Gaps in borrowers’ credit files could be closed under FCA proposals

Measures to help close gaps in people’s credit files are being proposed by the City regulator.

In cases where information about someone’s credit history is limited, they may face barriers to accessing credit, or could be exposed to increased risks of unaffordable lending, errors or fraud.

The plans from the Financial Conduct Authority (FCA) could help to improve how credit information is shared across the system, giving lenders access to more comprehensive and better-quality credit information.

The FCA is consulting on designating certain credit reference agencies (CRAs). If a lender shares credit information with one designated consumer CRA, it would be required to share it with them all.

CRAs collect personal financial data, including credit repayment histories, helping to inform lenders’ decisions.

The FCA is proposing that credit and mortgage firms who currently share consumer credit information with at least one designated credit reference agency would be required to share the same information with the other designated agencies.

The changes aim to close gaps in consumers’ credit files and ensure these more accurately reflect people’s financial circumstances.

Alison Walters, director of consumer finance at the FCA, said: “Access to affordable credit relies on good quality data – it’s vital in helping consumers navigate their financial lives. That’s why we want to make sure everyone’s credit information is as full and accurate as possible.”

The FCA’s consultation closes on May 1 2026. People can visit the Government-backed MoneyHelper website for information on checking credit reports.

Peter Tutton, director of policy, research and public affairs at debt help charity StepChange, said: “We’re pleased to see the FCA taking action to improve the quality of credit information.

“High quality credit information is crucial to support people to access affordable credit, essential services and prevent debt problems.

“Too often gaps and inconsistencies in credit information have excluded some consumers while leading to unaffordable lending to others.”

He added: “We also welcomed the Government’s support in the recent Financial Inclusion Strategy for the cross-sector initiative to develop a new framework to improve the way coerced debt is reflected in the credit files of victim-survivors of economic abuse.

“It’s vital that work is taken forward as a matter of urgency.”