The persistent debt framework
FCA rules introduced in 2018 targeted "persistent debt" on credit cards — where customers pay more in interest, fees and charges than they repay off the actual balance over time.
At 18 months of persistent debt, the lender must write to the customer with warnings and suggestions for faster repayment.
At 27 months, another notice is sent.
At 36 months, the lender must offer a way to clear the balance in a reasonable period (usually 3-4 years) at a lower interest rate.
What "clearing the balance faster" means
The lender proposes a fixed repayment plan for the outstanding balance. Typically this involves stopping new spending on the card and paying fixed monthly amounts over 3-4 years.
Interest may be reduced or fixed. The card is usually frozen for new spending during this repayment period.
If you ignore the notices
Ignoring persistent debt notices does not make them go away. The card may be frozen automatically at the 36-month stage.
The account may be closed and the balance called in. This can lead to formal default and credit file damage.
Options at persistent debt stage
Accept the lender's proposed repayment plan.
Repay the balance faster from other resources (savings, family help, etc).
Balance transfer to a 0% card if you qualify.
DMP, IVA or other formal solution if the persistent debt is symptomatic of wider debt problems.