Harrington Brooks’ response to the new FCA credit card rules
Matthew Cheetham, CEO of Harrington Brooks, responded to the new FCA credit card rules to help customers in persistent debt:
“Customer struggling with unmanageable debt may be more likely to turn to credit cards to help make ends meet. And with high interest charges and low minimum repayments, it can take customers years to clear this debt.”
“The new FCA credit card rules aim to end this cycle of persistent debt by taking steps to motivate customers to change how they repay. If customers consistently pay at or just above the minimum, credit card lenders need to make sure that they can constructively work towards clearing what they owe.
“We see customers that only get in touch with us for help when they start to struggle to make their minimum repayments on several credit cards. The credit card lenders hadn’t been in touch as customers were making the minimum repayment.
“By getting in contact with them before the debt has a chance to become persistent, this will help ensure customers can get back in control of their borrowing earlier. And it will also help to identify when it’s appropriate that a customer receives advice from an FCA-authorised source.
“This means that we and credit card lenders can work together to help people start to get back to a place of sustainable financial wellbeing – meaning they should stay more financially fit in the long-term.”