Today’s FCA Credit market study could offer vital help to borrowers

Commenting on the FCA’s credit information study released this morning, Emma Steeley, CEO of Freedom Finance, one of the UK’s leading digital lending marketplaces, said: “Increasing access to affordable credit by helping lenders make better decisions will play a significant role in supporting consumers through the cost-of-living crisis.

“Technologies like open banking are developing at pace to allow lenders to build up a more accurate picture of borrowers. Regulatory intervention will further empower industry participants to innovate, particularly benefiting those with limiting access to credit because their credit risk is over‑stated or poorly understood.

“Widening the scope of information gathered by reporting agencies to include Buy Now Pay Later would further reflect progress, especially for younger borrowers who may have had less time to build up their credit score.

“We strongly support the call to improve consumers’ understanding of their credit score to help all potential borrowers be in the best possible position to access the lending market at the lowest cost.”

MS19/1: Credit Information Market Study Interim Report and Discussion Paper | FCA