"Your credit file (or credit report) is a detailed, six-year history of your borrowing, repayment behaviour, and financial public records. It includes payments for credit cards, loans, mortgages, mobile contracts, and utilities. Lenders check credit files to decide whether to approve applications and what interest rate to offer."
"At present, there are notable inconsistencies in how information is reported to CRAs. Some lenders share comprehensive data, while others provide limited updates. The FCA consultation is looking at two main changes designed to make credit files more complete and more accurate."
"The FCA wants certain lenders to be legally required to share information about consumer borrowing with designated CRAs. For consumers, the changes could mean fewer nasty surprises when applying for credit but also closer scrutiny of their finances and credit score."
The Financial Conduct Authority is launching a consultation to address inconsistencies in credit file reporting, with changes taking effect 12 months after rules are confirmed. Credit files contain six-year histories of borrowing and repayment behavior used by lenders to assess creditworthiness and determine interest rates. Currently, lenders share data inconsistently with credit reference agencies, creating gaps that disadvantage borrowers with incomplete histories. The FCA proposes mandatory data sharing requirements for certain lenders to ensure comprehensive information reaches designated credit reference agencies. These changes aim to reduce surprises during credit applications while increasing financial scrutiny. The consultation runs until May 2026, after which implementation will follow.
#credit-file-reform #mandatory-data-sharing #fca-regulation #consumer-credit #credit-reference-agencies
Read at www.independent.co.uk
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