LONDON, Feb 3 (Reuters) - Credit card firms must review how
they treat customers that have been in persistent debt to help
them save up to 1.3 billion pounds a year in lower interest
charges, Britain's Financial Conduct Authority said on Monday.
New rules came into force in March 2018 to help customers
that have, over a period of 18 months, paid more in interest,
fees and charges than they have repaid on the principal balance
on their card.
The FCA said in a letter to CEOs of credit card firms on
Monday that following a review of the rules, it was concerned
that firms are proposing repayments options which are not
reasonable, and even planning "blanket" suspension of credit
cards.
"Where we identify poor practice, we will take swift action
to ensure customers are being treated fairly and our rules are
being followed," Philip Salter, director of retail lending at
the FCA, said in the letter.
(Reporting by Huw Jones)