In November 2014, the Financial Conduct Authority (FCA) launched a market study into credit cards, having taken over regulation of consumer credit in April 2014. The aim was to build a sound understanding of the market and assess whether it was working well in the interests of consumers. The interim report was published in November 2015. This set out the interim findings and outlined some potential remedies that might address respective concerns. The FCA invited views from interested parties on the interim findings and initial thinking on potential remedies and received 35 formal responses. The FCA has also held stakeholder events following the interim report’s publication. It included a constructive engagement with both industry and consumer representatives. In the interim report, a couple of firm-specific concerns were identified, where firms were either withdrawing promotional offers more frequently than one would expect, or were charging more than one fee in relation to a single month’s missed payment. The FCA Supervision teams have engaged with a number of firms on these issues.
In this final report, the FCA
- summarises the feedback on the interim findings
- sets out the further analysis
- confirms its final findings
- summarises the feedback on the early thinking on remedies
- sets out the way forward on the package of remedies
Link to publication