Credit card holders to be texted when deals end

27 July 2016
Cards texted when deals end

Around 5 million credit card holders are going to be getting texts and emails when introductory deals end, and when new (often rip-off) fees kick in.

This is all thanks to a new crackdown by City watchdogs, the Financial Conduct Authority (FCA).

Basically, if you've been wooed with a good deal on a credit card, once those terms end and new ones start, you'll receive notification of this three weeks in advance, so you can switch if you think you're being had.

At the moment, customers get no warning when deals are ending, and of course, this means people getting hit with charges and fees they might not expect, and customers not being able to clear their balances before they get hammered.

Richard Koch, head of policy at The UK Cards Association, said: "It is positive that the FCA has reiterated its finding that credit cards work well for most customers."

"That said, the industry remains committed to helping the minority of cardholders who do not use a credit card in a way which is in their best interest."

"To this end, the industry has developed a comprehensive package of voluntary solutions, which the FCA agrees will deliver positive outcomes and can be introduced into the market quickly."

Christopher Woolard, director of strategy and competition at the FCA, said: "We remain concerned about persistent and potentially problematic credit card debt."

"We will continue to work closely with consumer groups and industry and to deliver changes to help consumers gain more control over their finances." The FCA will publish further information on the proposed rules and voluntary remedies later in the year."

TOPICS:   Banking

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