In October 2022, the FCA issued an update on its now restarted Credit Information Market Study (MS 19/1). It is in the final stages of writing the interim report for the Market Study, which is now scheduled to be published in Q4 2022.
In 2019, the FCA launched its Credit Information Market Study and published its Terms of Reference. This was paused in April 2020 because of the pandemic and has now been restarted.
Credit information plays a critical role in many markets. It can impact consumers’ access to a range of financial services (including mortgages, loans and credit cards) and in some cases, the price they pay for them. This is significant as, according to the FCA Financial Lives Survey 2017, nearly four in five adults hold at least one credit or loan product. 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 market study focuses on the following themes:
• the purpose, quality, and accessibility of credit information,
• market structure, business models and competition, and
• 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. The interim report will set out a vision for the credit information sector, the emerging findings (including on lenders’ reporting of forbearance), and early thinking on any potential remedies. It will also take into account an FCA report commissioned into potential future developments in the credit information market (available at https://www.fca.org.uk/publication/research/future-credit-information-market-report.pdf).
The study will reflect market and regulatory developments relevant to credit information over the last 18 months, including:
• credit rating agencies’ and lenders’ responses to the pandemic,
• the impact that the growth in different/new forms of credit could have on credit information, and
• technological and behavioural changes that may alter the way people interact with their credit information (such as greater uptake of Open Banking).
If you’d like to know more about how we can help you with your credit information services arrangements, or any other regulatory compliance issues, our specialist team is here to help. Contact us today on 0207 436 0630 – or email info@thistleinitiatives.co.uk.