The Financial Conduct Authority (FCA) is to take a closer look at the credit card market as it feels that it isn’t working in the best interests of all customers.
More than 30 million people in the UK have a credit card but the regulator is worried that products are too complicated and that there’s a lack of competition when it comes to card holders shopping around.
The FCA also said that it intended to investigate issues around unaffordable lending.
It wants to understand “whether particular groups of consumers are over-borrowing or under-repaying their credit card balances and the possible reasons for this, including whether credit cards are marketed in a way that works against the best interests of consumers”.
A spokesman for the FCA said: “The credit card market is well-established and hugely important for UK consumers, who hold around 70% of all credit cards in Europe. We want to make sure that the market works well for all consumers and that cardholders get a fair deal.”
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