0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve invested in our content to provide more news, analysis, features, interviews and opinions across a wide range of Credit and Financial Services. Register now to access more of the trustworthy, insightful information that’s on offer.

Register now or Login

FCA launches review of the credit information market

The Financial Conduct Authority (FCA) has launched a market study to examine how the credit information market operates and its impact on consumers.

Share on LinkedInShare on TwittereCard

Given that firms use credit information when assessing credit risk and affordability, it can impact how likely consumers are to be able to access a range of financial services. These include mortgages, loans and credit cards and, in some cases, how much customers pay for them.

 

According to the FCA Financial Lives Survey, nearly four in five adults hold at least one credit or loan product. Furthermore, those vulnerable customers for whom a lender’s decision is more finely balanced are most likely to be affected if the credit information market is not working well.

The FCA’s market study will focus on the following themes:

  • The purpose, quality and accessibility of credit information
  • Market structure, business models and competition
  • Consumers’ engagement and understanding of credit information and how it impacts their behaviour

In exploring these themes, the market study will assess how the sector is working now and how it may develop in the future. It will also look at how the markets for credit information work in some other countries and what the UK market might learn from them.

 

The FCA will report on its preliminary conclusions on these themes in Spring 2020 including, if appropriate, a discussion of potential remedies. The FCA said it is not formally consulting on the terms of reference, but it welcome any views on them by the end of July.

 

Christopher Woolard, director of strategy and competition at the FCA, said: “We have launched this market study as we have identified concerns about the coverage and quality of credit information, the effectiveness of competition between credit reference agencies, and the extent of consumer engagement.

 

“Through the study we will seek to get a better understanding of how this vital market works and will identify remedies, where appropriate, to make it work more effectively for credit information users and individual consumers. This includes considering whether vulnerable customers are disproportionately affected by the way credit information is used, and whether any alternative approaches might deliver better outcomes for consumers.”

Share on LinkedInShare on TwittereCard
Add New Comment
You must be logged in to comment. Login or Register to access enhanced features of the website.

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

Upcoming events


Credit Summit


Credit Awards


FSE Week

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group