FCA Credit Information Market reforms: what lenders need to do now

By Paul Matthews, Senior Director of Risk

The FCA has launched a major consultation on the future of the UK’s Credit Information Market, proposing reforms designed to improve the coverage, quality and use of consumer credit data.

The consultation (CP26/7) follows the regulator’s Credit Information Market Study (CIMS) and forms part of a wider programme of reform being developed alongside the industry-led Credit Information Governance Body (CIGB).

At its core, the FCA wants lenders to make decisions based on complete, accurate and consistent credit data. When that does not happen, the consequences can be significant for both lenders and consumers.

The proposals aim to address several long-standing issues in credit bureau reporting, including:

Inconsistent data coverage across credit reference agencies
Poor data quality and slow correction processes
Limited information for individuals with “thin files” or who are credit invisible

For lenders, the message is clear: data quality and reporting controls are moving much higher up the regulatory agenda. In this article, I explain what the FCA’s proposals mean in practice – and why lenders should review their credit reporting processes now.

Get in touch with Broadstone to review your credit bureau reporting and data quality controls.

Table of Contents

Inconsistent and incomplete credit data creates real lending risks

The FCA’s study identified several structural weaknesses in the current credit information market.

One of the most significant issues is the inconsistent coverage across the three main UK credit reference agencies – Equifax, Experian and TransUnion. Lenders do not always report to every bureau, meaning each may hold a different picture of the same customer.

Alongside this, the regulator highlighted persistent data quality problems, including:

Errors in the information supplied to credit bureaus
Slow or ineffective processes for correcting mistakes
Gaps in how key events are recorded and updated
Court information such as satisfied CCJs relying on consumers to notify the bureau

These issues mean lenders are sometimes making decisions based on incomplete or inaccurate credit histories.

In practice, that can lead to several problems:

Credit being declined unnecessarily where the borrower’s profile appears weaker than it actually is
Affordability risks where lenders cannot see the customer’s full credit exposure
Incorrect pricing of risk, affecting both lenders and borrowers

Over time, inaccurate data can also cause long-term customer detriment, particularly if errors remain unresolved across their credit files at multiple bureaus.

The FCA wants stronger reporting standards and better data governance

The FCA’s proposed reforms place a much stronger emphasis on the quality, completeness and governance of credit data submissions.

One key proposal is the introduction of mandatory reporting to a set of “Designated Credit Reference Agencies”, which are expected to include Equifax, Experian and TransUnion. Alongside broader reporting coverage, the consultation introduces clear expectations around data validation and error management.

Under the proposed framework, lenders would need to:

Test data accuracy before submission to credit bureaus
Monitor reporting systems and processes for systemic issues
Correct errors promptly, including addressing root causes
Take responsibility for reporting satisfied CCJs, rather than relying on customers

These requirements effectively move bureau reporting away from a routine operational task and toward a controlled regulatory process with defined oversight and accountability.

Lenders should address historical reporting issues before the rules take effect

For many lenders, credit bureau reporting has historically been treated as a relatively straightforward operational function. In reality, correct reporting can be more complex than it first appears.

While standard account updates may be simple, more nuanced situations require careful handling, including:

Forbearance arrangements
Settlements
Payment plans
Customer deaths or goneaway cases
Account restructuring or write-offs

If these events are reported incorrectly, credit data can misrepresent a customer’s position for years. The FCA’s proposals will increase scrutiny, and firms that uncover systemic historic issues could face regulatory attention or remediation.

Speak to Broadstone about your credit bureau reporting

Now is the time for lenders to review their reporting processes and strengthen data controls. Broadstone’s Bureau Health Check Service helps firms identify gaps and risks in credit bureau submissions before they become regulatory problems.

Get in touch with Broadstone to review your credit bureau reporting and data quality controls.