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

Dear visitor,
You are viewing 1 of your 2 free articles


To view more free articles, please register

Free registration or Login

Exclusive: FCA chief exec calls for transparency on credit refusals

The Financial Conduct Authority’s chief executive has called for greater transparency in the way lenders communicate the reasons for credit refusals to applicants.


Amber-Ainsley   Pritchard

Share on Twitter Linkedin black
Amber-Ainsley   Pritchard
Share on Twitter Linkedin black
Andrew Bailey, chief executive of the Financial Conduct Authority
Andrew Bailey, chief executive of the Financial Conduct Authority

In an exclusive interview with Credit Strategy, Bailey said consumers need to be properly informed why the refusal has been made when customers’ applications for mortgages, loans and credit cards are declined.

 

His comments follow an FCA paper last year which mentioned there is a confusing void of information for consumers as to why they’ve been refused a certain product.

 

When questioned on the issue by Credit Strategy, Bailey mooted the reasons that could be given to consumers for the refusal, stating: “Is it as straightforward as their credit reference? Is it something about the nature of the product that doesn’t fit with their information? It may be in some cases the credit reference precludes a lot of products. Is it about credit, or is it about some other aspect of the customer’s profile?”

 

He added: “It’s wrong to think the only thing that matters is the credit score. I think it’s likely, inevitable and sensible that the credit scoring process becomes more transparent to people. I think people deserve greater transparency.

 

“It’ll be interesting if you see the work that’s building up on open access; this question that comes out of the Competition and Markets Authority report, this desire for the broad access to information to allow people to have greater choice of products and how that will play out.”

 

Bailey added that the FCA has looked at, and will continue to make statements on, the use of big data because “some of it is undoubtedly beneficial and some of it isn’t.”

 

He said: “Information which is used to increase choice of products and improve risk pricing - that’s a good thing. There’s another set of information where we take a slightly different view, where firms use information about people to, in a sense, exploit their characteristics.”

 

The topic of credit refusals will be touched upon during Credit Week as part of Credit Strategy’s Credit Awareness Week campaign.

 

A debate at the Credit Summit, the flagship event of Credit Week, will cover how consumers can empower their financial futures. It will focus on the reasons behind credit refusals and the use of the Standard Financial Statement.

 

You can read the full interview with Andrew Bailey in the April issue of Credit Strategy.

Share on Twitter Linkedin black
Add New Comment

YOU MIGHT ALSO LIKE


Entries for the Credit Awards close this Friday

Entries for The Credit Awards 2018, which will celebrate its 19th year at the Grosvenor House Hotel in Park lane this May, close this Friday

Will you help to shape the next Credit 500?

It’s time for the Credit 500, an index of the industry’s most important influencers and decision-makers, to be updated and entries are now open for nominations

“It's time for us to address gender diversity”

With launch of a initiative, Women in Credit, Credit Strategy is tackling the gender diversity issue in credit across multiple sectors

The Car Finance Awards are now open for nominations

The Car Finance Awards is back for its third year in 2018, taking place after the Car Finance Conference in Nottingham on June 7

LATEST IN ANALYSIS


The CS Interview

The patriot

The patriot

Features

Ahead of the curve: Five reasons why Intelligent Environments secured the Best Collections Technology Award
Share on TwitterLinkedin black

Ahead of the curve: Five reasons why Intelligent Environments secured the Best Collections Technology Award

Opinion

“Public awareness has reached a crescendo”
Share on TwitterLinkedin black

“Public awareness has reached a crescendo”

Bank NPL analysis

Banks continue purge of bad debt from balance sheets

Banks continue purge of bad debt from balance sheets

Events

Credit Week 2018

Credit Summit

CDSP European NPL

Women in Credit Awards 2018

ENJOY READING?

Credit Strategy
LinkedIn page

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