The UK Financial Conduct Authority (FCA) is set to undertake a competition review into the country’s £150bn credit card market at the end of 2014.
Speaking at the Credit Today Credit Summit, FCA CEO, Martin Wheatley, said with 30 million people holding at least one credit card, it was right to explore competition in the market and check whether it was working effectively for consumers.
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According to recent research, around 70% of all European credit cards are held by Britons and the UK market has 56 million credit cards in issue.
Wheatley said the key priority here has to be those in the most vulnerable circumstances and those who are struggling to manage their credit card commitments and other bills.
“As part of this review, or market study as we call it, we will be engaging with the industry ahead of time and it’s important to say there’s no pre-determined terms of reference, outcome or agenda here.
“There is however, a duty of care to consumers, and I think it’s important for there to be clarification of whether competition is working in their interests,” Wheatley added.
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