Business
FICO UK Credit Card Market Report: January/February 2025
LONDON, April 30, 2025--The latest analysis of UK card payments from global analytics software leader FICO shows that spending fell in January and rose in February, as per usual seasonal patterns. However, January saw increases in missed payments across one, two and three months. In February there was evidence of consumers prioritising card payments, with decreases in cardholders missing one and two payments. An area of concern for credit managers is the persistent rise in customers missing thre
About this update from Fair Isaac Corporation
[{"type":"text","content":"First-party fraud identified as potential risk as financial pressures impact affordability","length":90,"tagName":"p","attribs":{}},{"type":"text","content":"LONDON, April 30, 2025--(BUSINESS WIRE)--The latest analysis of UK card payments from global analytics software leader FICO shows that spending fell in January and rose in February, as per usual seasonal patterns. However, January saw increases in missed payments across one, two and three months. In February there was evidence of consumers prioritising card payments, with decreases in cardholders missing one and two payments. An area of concern for credit managers is the persistent rise in customers missing three payments.","length":528,"tagName":"p"},{"type":"text","content":"In discussions with leading financial institutions, FICO has also identified a growing trend in first-party fraud. This is where a cardholder intentionally makes a large purchase up to their credit limit, knowing that the payment they make will bounce. During the period that is required for the payment to clear, available credit may reopen on the card. This allows fraudsters to make additional purchases and increase the balance even further. By the time the payment is returned, and an insufficient funds error is received, the damage has been done. FICO is working with a number of card issuers to develop strategies where payments identified as high risk are held for a number of days until the payment clears. This helps to reduce these delinquent balances that end up going to charge-off.","length":796,"tagName":"p"},{"type":"text","content":"Highlights","length":10,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"Average credit card spending fell by 11% month-on-month in January (£765) but rose by 3% in February to £790","length":108,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"January average balances fell by 0.6% month-on-month but rose by 0.5% in February, with the higher cost of living evident in a year-on-year increase of 5%","length":154,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"By February the percentage of overall balance paid had dropped by more than 4% year-on-year to 35%","length":98,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"The average balance of one missed payment increased in January and February, to £2,...