Millions with card debt to be spared a bailiffs’ visit

Credit card companies must wait four years before calling in the bailiffs under new rules to tackle a growing personal debt crisis.

The measures, laid out by the Financial Conduct Authority (FCA), are designed to protect about four million people who are dealing with problem debt on cards.

At present, card providers can pass borrowers’ debt on to debt management firms at any point after a person falls into arrears.

However, under the new rules, if borrowers have been in problem debt for 36 months or more, firms must offer them an interest-free repayment plan, allowing them to spread repayments over up to four years before the debts can be passed on.

The FCA said debt had become “profitable” for some, with little incentive for lenders to offer help.

The rules come into force on March 2019 but lenders have until this September to comply.