On 6 June 2014, the FCA confirmed that it will formally launch a study into the credit card market later this year.
The market study will help the FCA decide what actions, if any, are needed to make this market work better for consumers. There are no pre-determined terms of reference or outcomes for the study. Research carried out by the FCA on how the market is working for consumers found that whilst there appeared to be strong competition in the credit card market, this seemed to focus on particular card features that may not represent long-term value or sustainability.
This market study is part of the FCA’s broader work in consumer credit. Firms should be prepared to engage with the FCA as part of this exercise.
Further information can be found here.