Josh’s situation is not unique, and thankfully he did get good support when he contacted his creditors, one of which referred him to StepChange. But there was a long period where Josh was struggling after being made redundant, and this is the point where quicker action from credit card providers could be useful for customers.
Financial Conduct Authority (FCA) rules say that when customers become stuck in long-term credit card debt -what the FCA calls persistent debt -lenders must notify customers after 18 months and offer them support and intervene after 36 months (three years) moving customers that cannot increase repayments to clear the debt to an affordable paydown plan. Yet situations like Josh’s show how beneficial…