Richard Koch, Head of Policy at The UK Cards Association, said:

“Credit cards are an important part of the daily lives of consumers, so it is understandable that the regulator is keen to explore how such an important sector is working. The industry has a long-standing commitment to responsible lending and transparency and over the last five years has introduced many changes including on credit limits and re-pricing of debt, improved transparency, and forbearance for those who find themselves missing repayments.

“Our work with debt advice charities shows that changes in people’s circumstances, such as illness, unemployment or separation, can mean that financial commitments which were previously manageable suddenly become harder. That is why there are measures in place for providing extra support for people in such situations.

“We will study the FCA’s observations carefully and welcome the opportunity to work with them.”