Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what representations his Department has received from consumer groups on unintended consequences of the Financial Conduct Authority’s persistent credit card debt remedies; and if he will ask the FCA to (i) bring forward its review of those remedies and (ii) include in that review consideration of a cap on charges.

Treasury ministers and officials meet regularly with a range of interest groups to discuss consumer issues in financial services, including persistent debt.

The Financial Conduct Authority (FCA) is responsible for regulating and supervising the financial services industry and has strong powers to protect consumers. Although the Treasury sets the legal framework, the FCA is an independent regulator and Treasury ministers have no general power of direction over the FCA.

The FCA has committed in its Policy Statement PS18/4 to review the persistent credit card debt rules once they have been fully implemented by firms and in operation long enough to assess consumer outcomes. The FCA expect this to be in 2022 or 2023. The Government will continue to work closely with the FCA to ensure consumers of financial services are treated fairly.