FCA publishes terms of reference for credit card market study

[Legal Beagles]

The FCA announced the market study in April 2014 after its own research showed that the credit card market was not working well for some consumers.

http://www.fca.org.uk/news/fca-publishes-terms-of-reference-for-credit-card-market-study ] More... [/url]

[EXC]

Re: FCA publishes terms of reference for credit card market study

Terms of reference.

Previous concerns have been raised around the opaqueness and level of credit card fees and
charges. In 2003 the OFT began an inquiry into credit card ‘default charges’, and in 2006 found
that many default charges were unlawful. As a result it issued a statement suggesting a £12
cap on such charges (unless exceptional business factors were in play) Rules have also been
introduced over the years to improve transparency and ease comparison.

During the course of the market study we will be considering the impact of credit card fees, charges
and terms and conditions on consumers’ willingness and ability to effectively shop around.

[leclerc]

Re: FCA publishes terms of reference for credit card market study

Yes everyone still charges the maximum £12 and the FOS has insisted that banks have got independent data stating that it costs more that £12 so why don't they increase the charges then? Because clearly all of the steps that is supposedly more than £12 include things that, in practice, are not actually done...