Regulating the credit card market: why we need a cap on costs

Briefing: Regulating the credit card market: why we need a cap on costs

The UK is in the grip of a consumer debt crisis. As at April 2019, households owed a staggering £217 billion; the highest level on record and greater than prior to the Financial
Crisis of 2008. This figure excludes mortgages and student loans.

The build-up of household debt is a growing crisis and the use of credit cards is a very significant part of this. While access to credit is crucial to most people, it is neither morally right nor economically intelligent to permit lenders to target those on lower incomes with very high rates of interest in order to extract large profits.

To end the debt trap, the the Centre for Responsible Credit, Jubilee Debt Campaign, New Economics Foundation and Research for Action call in this briefing for a total cost cap on all types of consumer credit.

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