StepChange calls for stronger credit card consumer protections

StepChange Debt Charity published a report on the regulatory framework for credit cards on 29 July 2026, calling for reforms to protect people from becoming trapped in expensive credit card debt¹. The charity said the FCA should update its rules so lenders step in sooner than 36 months to help customers stuck in long-term debt¹.

YouGov polling for StepChange found that almost one in six (15%) UK adults, equivalent to more than 8 million people, find keeping up with their credit card repayments a very or fairly large burden each month¹. One in ten (9%) UK adults, around 5 million people, had used a credit card to pay for essential household bills in the past three months, and credit cards were the most commonly used form of credit for covering these costs¹.

StepChange said previous research of its own found around 2.5 million people, 5% of all UK adults, are trapped in persistent credit card debt, meaning they have paid more in interest, fees and charges over the past 18 months than they have repaid towards the balance itself¹. The FCA defines persistent credit card debt in the same terms, and its Financial Lives survey found that in 2024, 5% of adults (2.8 million) were in persistent credit card debt, up one percentage point since 2022¹. The two figures for the number of people affected differ: StepChange cites around 2.5 million, while the FCA's survey puts the 2024 figure at 2.8 million¹.

More than seven in ten (73%) StepChange clients currently have credit card debt, a proportion that has increased this year, and Bank of England data shows credit card defaults reached their highest level since 2009 in the three months to June¹. The FCA introduced rules on persistent debt in 2018¹.

StepChange's proposed measures cover three areas¹:

Area	StepChange's call
Affordability checks	The FCA should clarify its rules and take supervisory action where needed so lenders ensure customers, especially those who are financially vulnerable, can afford to repay balances before they borrow
Minimum repayments	The FCA should increase minimum repayments to at least the level needed to prevent persistent debt and ensure borrowing is affordable
Support in persistent debt	The FCA should update its rules so lenders step in sooner than 36 months, especially for those with high-interest cards

"Millions of people are finding it difficult to keep up with their credit card repayments, while many are increasingly relying on credit to cover essential household costs. This creates a real risk that more people will become trapped in long-term debt."

Peter Tutton, Director of Policy, Research and Public Affairs, StepChange Debt Charity¹

Why it matters for households

The figures describe how many households are already carrying credit card balances they find hard to manage, and how many are using cards for essentials such as housing, utilities, council tax, groceries and transport¹. Persistent debt, as defined by the FCA, is reached when someone has paid more in interest, fees and charges than towards the balance over 18 months¹. Under the current framework, lenders act at 36 months; StepChange wants that point brought forward¹. Its proposal on minimum payments would raise the amount due each month, which the charity argues leaves customers with more of their money for living costs over time, while those who cannot meet the higher minimum should get help and forbearance rather than remain in long-term debt¹. Any change to the rules would apply to credit card borrowing regulated by the FCA; no timetable for reform has been reported¹.

What happens next

No date has been set for an FCA response to the report, and no consultation or rule change has been announced¹. The report is a briefing setting out StepChange's position; the FCA's next steps on persistent debt rules have not been reported¹.

Sources1 cited