Put borrowers in control of their credit card debt, urges The Money Charity

Today we’re calling for credit card borrowers to be put in charge of their credit limits, by stopping providers from unilaterally increasing the amount of debt available.

The Financial Conduct Authority (FCA) is currently conducting a market study that will look at how credit cards work for consumers. We want to see an end to credit card providers raising credit limits where a customer hasn’t asked for it – either when they apply or once they have the card.

We also want to see earlier identification and support for borrowers who are having difficulty repaying their debts. The FCA found that more than a million customers were making only the minimum repayment on their credit card for 12 consecutive months – meaning they were paying off the interest for that month and a very small amount of the balance.

Read our full response to the FCA’s Terms of Reference for the study here.