In July 2016, the Financial Conduct Authority (FCA) published its final report into its study of the credit card market (CCMS), setting out a package of measures to help consumers take better control of their spending. Responsibility for the oversight and monitoring of four of these remedies sits with the Lending Standards Board (LSB). The remedies are:

  • Expiry of a promotional rate
  • Prompting customers who are nearing their limit
  • Allowing customers to request a ‘later than’ payment date
  • Unsolicited Credit Limit Increases (UCLI)

The remedies are focused around a series of escalating interventions designed to improve customers’ awareness of their borrowing, repayment patterns and associated costs which allows greater control over their borrowing.

As part of the oversight framework agreed between the LSB and FCA, a post implementation effectiveness review was recently undertaken by the LSB to assess how the package of remedies has impacted customers’ use of their credit card.

Implementation of the remedies has enhanced the ability to prompt changes in customers’ repayment behaviour, meaning they can intervene earlier when it is identified that a customer may be showing signs of being in financial difficulty.

Where key areas for improvement were identified the LSB will be working with firms to ensure they are resolved as a matter of priority.

Read the full summary report here.