2016年-FCA英国金融行为监管局_ms14_6_3_credit_card_market_study_final_findings_report_70页_2mb

Credit Card Market Study Final Findings Summary

Core Content

This document is the Final Findings Report of the Credit Card Market Study conducted by the Financial Conduct Authority (FCA). The study was launched in November 2014 and published an interim report in November 2015. It aims to assess the performance of the UK credit card market in the interests of consumers and to identify potential remedies for issues affecting the market.

Key Findings

1. Consumer Engagement and Market Competition

• Competition is working fairly well for most consumers, with many actively engaged and a wide range of products available to suit different needs.
• Around 6 million new accounts were opened in 2014, showing strong consumer willingness to switch.
• Price comparison websites (PCWs) are useful to consumers, with 66% finding them helpful, but have limitations in reflecting individual usage patterns and are not transparent about their funding sources.
• Consumers may not always choose the best credit card for their needs due to a lack of understanding of terms or insufficient consideration of product features.

2. Problematic Credit Card Debt

• 6.9% of cardholders (about 2 million people) were in arrears or default in 2014.
• 2 million people had persistent debt that was difficult to repay.
• 1.6 million people were making repeated minimum payments while incurring interest charges.
• 8.9% of active credit cards in January 2015 (5.1 million accounts) would take more than ten years to pay off under current repayment patterns.
• A significant proportion of those in persistent debt or systematic minimum repayment behavior have been in these states for three or more years, indicating long-term issues.
• Over 20% of those in severe arrears in 2014 had no active credit card in 2012, showing a rapid descent into debt problems.

3. Multiple Credit Cards

• Consumers with multiple cards are not necessarily in problem debt, but 13% (1.9 million) are in potentially problematic debt on one card, and 11% (1.6 million) on more than one.
• Those with multiple cards tend to have higher total credit limits and outstanding balances.
• 7% of consumers with multiple cards are in potential problem debt on all their cards.

Proposed Remedies

The FCA has proposed a package of remedies to address the issues identified, including:

1. Shopping Around and Switching

• Open access to data and use of APIs will be explored to improve consumer access to account-level data, starting in January 2018.
• The FCA is working with the UK Regulators Network on price comparison websites (PCWs) and will feed into the CMA's market investigation.
• The UK Cards Association (UKCA) has agreed to inform consumers when their promotional offers (typically 0% interest) are due to end.

2. Higher Risk Consumers

• The FCA is committed to promoting quotation searches to help consumers shop around without damaging their credit score.
• The BBA, FLA, and UKCA have agreed to work on this area over the next year.

3. Borrowing and Repayment Behavior

• Firms will be required to alert consumers at a set point of credit limit utilisation.
• The FCA is exploring a novel repayment approach to remove the "anchor" of minimum repayment and encourage consumers to choose repayment amounts based on how quickly they want to pay down debt.
• A small increase in minimum repayment rate is being considered, but will be evaluated alongside behavioral remedies.
• The FCA intends to consult on measures to give consumers more control over their credit limits later in 2016.

4. Managing Problematic Debt

• The FCA intends to consult on rules requiring firms to identify early signs of debt problems and intervene.
• Firms may be required to offer structured repayment plans to consumers who have been persistently indebted for a period.

Stakeholder Feedback and Industry Response

• Stakeholders broadly supported the findings and the proposed remedies.
• There was a call for targeted remedies, behavioral trials, and more transparency in PCWs.
• Industry representatives (UKCA) supported the proposals and agreed to implement certain measures, such as alerting consumers about promotional periods and allowing flexible payment dates.
• Some consumer groups expressed concern that the remedies were not sufficient to tackle problem debt and suggested stronger requirements, such as capping interest rates or limiting minimum repayments.

Conclusion

• The feedback and further analysis have reinforced the FCA's concerns about problematic credit card debt, especially among higher risk consumers.
• The FCA has refined its thinking on remedies but has not fundamentally changed its conclusions.
• The proposed remedies will be implemented through a combination of FCA rules, industry agreements, and supervisory work.
• The FCA will continue to engage with stakeholders and monitor the effectiveness of industry agreements over time.

Key Issues and Next Steps

• Cross-subsidization does not appear to be a significant barrier to competition.
• The FCA is working on clarifying creditworthiness assessments, especially for consumers with existing borrowing commitments.
• The regulatory framework in the UK and EU will be kept under review, especially following the UK's decision to leave the EU.

Final Notes

The FCA will publish a detailed way forward for each element of the remedy package in Chapter 8 of the report. The package of remedies is designed to help consumers make better decisions, encourage firms to address persistent debt, and improve overall market transparency and fairness.