LONDON (Reuters) - Scrapping the minimum repayment requirement on credit cards could encourage people to pay back more of their debt, Britain’s markets watchdog said on Thursday.
The Financial Conduct Authority (FCA) published findings on research that looked at how to encourage people who repeatedly make low repayments on credit cards to pay more when they can afford it.
“Given the effects we observed during our testing, we are considering consulting on changing our rules and guidance to mandate the removal of the minimum repayment anchor,” the FCA said in a statement.
“We consider a de-anchoring measure has the potential to increase consumers’ credit card repayments where they can afford to do so whilst preserving the flexibility of credit cards, which millions of consumers value.”
Reporting by Huw Jones, editing by Carolyn Cohn