The Financial Conduct Authority (FCA) require us to monitor all credit accounts in line with their Persistent Debt guidance which aims to help customers avoid long term debt. We will get in touch with you, if by their definition, you are in Persistent Debt.
This means that you have paid more towards interest, fees and charges over the previous 18 month period, than you had paid towards reducing the amount you borrowed.
If your account remains in Persistent Debt for a period of 36 months, we are required to inform you that you must take action to repay your Persistent Debt balance within a reasonable period of time.
Can you afford to pay more?
Increasing the amount you pay could help you save money and clear your balance sooner.
Make extra payments
when you can
Continue to make your minimum payment each month, but also make additional payments when possible.
Set up a Direct Debit
If you haven't already, set up a Direct Debit so you never miss a payment and get charged a fee.
How can I change what I pay?
Once you've worked out what you can afford to repay each month, you can choose to either:
- Increase your monthly payment to an amount you can afford.
- Continue to make your minimum payment each month, but also make additional payments when possible.
You can make a payment anytime in My Account or by giving us a call and using our automated payment service, click here for details.
How will I know if my account is in Persistent Debt?
As part of the FCA rules on Persistent Debt we will be in touch if you have, over the past 18 months, paid more in interest, fees and charges on your account than towards paying back the amount you borrowed. Under the FCA rules this means your account is in something called “Persistent Debt”. We will monitor your account and will let you know when your account is in Persistent Debt.
18 months notification: If your account is identified as being in Persistent Debt, then we will contact you to explain your options and offer support if you need any extra help.
27 months notification: If you have not made sufficient payments to help reduce your Persistent Debt balance, we will get in touch again and explain what you need to do next.
36 months notification: If you’re still in Persistent Debt at this point, we will contact you to explain your options to repay your Persistent Debt balance over a reasonable period.
Why does it matter if I'm in Persistent Debt?
Although your credit account gives you flexibility on how to repay your balance, choosing interest free terms will reduce the cost of your borrowing over time. Having long term debt also means that you're more at risk of running into financial difficulties in the future.
Will this affect my credit score?
No, but having long term debt could mean that you’re more at risk of running into financial difficulties in the future.
Am I doing anything wrong by just paying my minimum payment?
No, but it’s worthwhile making use of our 20 week or 52 week interest free credit options for any new purchases, or choose Buy Now Pay Later where you can avoid paying interest by paying the full cash price before the end of the delayed payment period. This will reduce your overall cost compared to paying over longer periods and being charged interest.
How can I avoid paying interest in the future?
Why not take advantage of our 20 week or 52 week interest free payment options for any new purchases or choose BNPL and pay the full cash price before the end of the delayed payment period to avoid paying any interest. This can be done in one full payment or multiple partial payments. Making partial payments without paying the full cash price may result in a portion of the lump sum of compound interest being refunded at the end of the delayed payment period.
These options will reduce your overall cost compared to paying over longer periods and being charged interest.
Get in touch
If you're concerned and would like to discuss your options, please contact us, click here for details. Lines open Monday to Friday 8am - 8pm and Saturday 8am - 6pm (Excluding bank holidays).
Alternatively, if you're experiencing significant or potentially long-term financial difficulties, it may be beneficial to contact a debt advice service. StepChange Debt Charity offers free, impartial and confidential advice; you can visit their website at www.stepchange.org or you can call them, click here for details.