LONDON, Feb 27 (Reuters) – Britains Financial Conduct Authority ordered banks on Tuesday to take steps to help people with persistent credit card debt to keep up with repayments.
The FCAs new rules will, however, will still allow banks to ultimately suspend a credit card if a customer fails to make any progress in repaying debts.
The changes are based on an FCA market study of 34 million credit card customers over a period of five years.
They come into force next month and will save consumers 310 million to 1.3 billion pounds a year in lower interest charges, the FCA said. The sector has until September to comply.
The aim is to stop people using credit card debt as an expensive long-term loan that is not repaid.
Under the new rules firms…