FCA proposes credit information changes

FCA has announced proposals which will:

  • require FCA-regulated data contributors, such as lenders, to share credit information with credit reference agencies (CRAs);
  • introduce a common data reporting format to enhance consistency across CRAs and promote competition;
  • provide greater control for consumers over how they are viewed through making it easier for consumers to record non-financial vulnerability information.

The announcement follows the earlier publication of both an interim report, published in November 2022 and a final report, each of which found that whilst the credit information market was working well in a number of ways, there were also several areas where the market could be working better.

Also announced were the terms of reference for an interim working group which has been set up to establish a new credit reporting governance body, designed to be more inclusive, transparent and accountable, which will oversee many of the changes proposed. The FCA expects the working group to start its work in January next year and deliver in nine months.

Duncan Scott