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UK credit card market not working for some: Regulator

[LONDON] Britain's credit card market is not working well for some customers who are over-borrowing and paying unexpectedly high interest rates, the Financial Conduct Authority (FCA) said on Tuesday.

The regulator said it will study how easy it is for customers in Europe's biggest credit card market to shop around, how card providers recover costs, and the extent of unaffordable debt.

Some 30 million customers have a credit card in Britain, accounting for 56.9 billion pounds (US$89.2 billion) in outstanding debt, according to the FCA. "We want to understand in more depth what drives consumers to make the choices they do and how firms develop the services they offer," FCA director of policy Christopher Woolard said.

The study will focus on cards offered by banks and so-called mono-line issuers, or firms that only offer credit cards.

REUTERS