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Monday, April 3, 2017

Ignore the nanny-state claims – credit card firms need to help those in long-term debt | Nils Pratley

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The FCA is right to try to force lenders to assist the millions languishing under persistent debt

Concerns that the credit card industry creates, and then milks, over-indebted consumers are not new. It was as long ago as 2003 that Matt Barrett, then chief executive of Barclaycard owner Barclays, generated headlines when he told MPs that he had advised his children never to borrow on a credit card “because it’s too expensive”.

His analysis was spot on, of course, which is why it is so alarming that the FCA says 3.3 million people in the UK are in persistent credit card debt, defined as those who are repaying less in principal than they are paying in interest and charges over a period of 18 months. The financial pain can be delayed by teaser rates and zero-interest periods but, when it comes, it can be severe.

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April 03, 2017 at 10:56PM

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from Nils Pratley and Graham Ruddick

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