The Financial Conduct Authority told credit-card issuers on Tuesday to refresh persistent-debt communications before November statements land, when customers who have carried balances for 36 months may be moved onto faster repayment plans.
How persistent debt rules work
Under rules in force since 2018, firms must prompt borrowers who have paid more in interest and charges than principal over an 18-month window. After 36 months, issuers either restructure debt on a repayment plan, freeze interest or cancel the card.
The regulator’s September bulletin stressed that template letters must spell out the pound cost of staying on minimum payments and the date by which customers must respond. Firms that miss deadlines risk supervisory fines and redress programmes.
What changes in November
Many UK banks align card cycles to calendar months, meaning the next wave of persistent-debt notices will reference Christmas spending from 2023. With Bank Rate still at 4%, standard purchase APRs on mainstream cards remain above 20% for many households.
Customers who ignore the letters may see minimum payments jump to a level that clears principal within three to four years.Issuer preparations
Major lenders said call-centre staffing is being increased for October, when voluntary balance transfers typically peak. Comparison sites report 26-to-30-month 0% transfer offers still dominate best-buy tables, though transfer fees have ticked up on some products.
Debt charities welcomed the reminder but argued the rules should capture buy-now-pay-later plans that sit outside the credit-card perimeter. The FCA’s consumer-credit review is expected to address that gap in 2027.
For borrowers, the practical step is to open November envelopes promptly: accepting a structured plan can freeze interest, while doing nothing can accelerate payment shocks just as winter energy bills arrive.
Charity caseload
StepChange said its helpline volume rose 9% year on year in September, with many callers unaware that persistent-debt letters are legally mandated rather than marketing mail. Advisers recommend responding within the 30-day window even when customers intend to switch cards, because silence can trigger higher minimum payments.
The FCA’s bulletin also reminded firms to offer breathing-space referrals where customers disclose mental-health crises, a requirement that expanded in 2024 but remains unevenly applied across sub-prime issuers.
Credit-reference agencies told lenders to refresh affordability flags before November cycles, particularly for customers who took payment holidays during the pandemic and still carry elevated utilisation ratios.