The FCA set out their proposed approach to implementing their Credit Information Market Study remedies, which seek to improve the accuracy of credit information reported to credit reference agencies.
We welcome this consultation on the Credit Information Market Study proposals. Our research demonstrates that credit information is central to consumer outcomes and the harms StepChange sees as a free debt advice provider. Credit information should support financial inclusion . Where it is accurate and comprehensive, credit information can facilitate responsible and affordable lending. So, we hope that these proposals will support the Government’s wider financial inclusion aims.
We are broadly supportive of the proposals to implement the FCA remedies. We understand the balance the FCA has sought to strike between meeting the goals laid out in the Credit Information Market Study and not putting an undue burden on firms. This goal to minimise requirements on firms must be balanced, however, with ensuring that the proposals deliver a real benefit to consumers and support wider financial inclusion aims. For the CIMS proposals to meet their aim of improving the quality of consumer credit information, work must be aligned with that of the new Credit Information Governance Body (CIGB) . Coordination be tween FCA and CIGB led remedies will need to be monitored as it goes forward.