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What has happened? 

In December 2023, the FCA announced in its Market Study MS 19/1 a range of measures intended to improve the quality of the information collated by credit reference agencies (CRAs), which is used to inform lending decisions, and is also intended to boost competition in the market.

What are the key points?

In November 2022, the FCA published an interim report which found that, whilst the credit information market was working well in a number of ways, there were also several areas where it could be working better. Issues identified included significant differences in data between CRAs and that consumers lacked awareness of how to access and dispute credit information.

The proposals will:

• Require FCA-regulated data contributors, such as lenders, to share credit information with CRAs,
• Introduce a common data reporting format to enhance consistency across CRAs and promote competition, and
• Provide greater control for consumers over how they are viewed through making it easier for them to record non-financial vulnerability information.

This announcement also includes the terms of reference for an Interim Working Group, 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 to deliver in nine months.

By the end of 2024, the FCA expects to begin consulting on new measures, including the introduction of a mandatory reporting requirement. It expects to publish a series of consultation papers, starting with the publication of an initial consultation paper on FCA rules relating to mandatory data sharing by the end of 2024.

How can we help you? 

Thistle Initiatives has supported credit firms for over 10 years as a trusted compliance and regulatory advisor. In addition to assisting you as-and-when, our team of specialists can serve as your right hand in meeting and complying with FCA regulations. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.

Are you looking for help with your credit reference procedures, or more general regulatory questions? Contact our specialist lending team now to schedule a free consultation. Get in touch with us by calling 020 7436 0630 or sending an email to info@thistleinitiatives.co.uk.