City watchdog delays credit information market study launch
THE CITY regulator has pushed back the launch of its credit information market study until June 2019.
The Financial Conduct Authority (FCA) had invited views on firms’ access to, and use of, credit information provided by credit reference agencies, as part of its consultation on assessing creditworthiness in consumer credit.
It had planned to launch a market study on this topic in the fourth quarter of 2018 but this has now been delayed as it is prioritising a market study on general insurance pricing instead.
Read more: Consumer credit complaints surge
The insurance-focused market study had not been included in its annual business plan, the FCA said.
Despite the delayed launch, the FCA underlined the importance of effective and accurate data to support financial inclusion in the consumer credit market.
Read more: Lenders predict higher demand for consumer credit but supply is set to drop
“Consumers’ credit information affects how likely they are to be able to access a range of financial services, including mortgages, loans and credit cards,” the FCA said.
“Credit reference agencies play an important role in the provision of this information to inform firms’ assessments of credit risk and affordability. Consumers may experience harm if this information is not shared effectively or is not of good quality through inappropriate lending decisions or restricted access to credit.”
Read more: Consumer credit growth hits three-year low
