Watchdog probes credit cards to see if borrowers are ripped off

Tim Wallace
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THE CREDIT card market is the latest sector to face an investigation, the Financial Conduct Authority (FCA) said yesterday.

It is investigating concerns over competition, transparency of charging, and loan affordability.

The watchdog is in the process of clamping down on payday lenders, after receiving powers over consumer credit in April.

Industry body the UK Cards Association said the sector: “has a long-standing commitment to responsible lending and transparency and over the last five years has introduced many changes including on credit limits and re-pricing of debt, improved transparency, and forbearance.”

And the Money Advice Trust said credit cards are less and less responsible for bad debts.

“We are actually seeing a marked shift away from borrowers having problems with traditional credit products, with more and more people instead falling behind with everyday household bills,” said chief executive Joanna Elson.