Entities

U.K. Financial Conduct Authority (2)

Topics and Issues

COVID-19 (26)

Data Suppression (14)

During the COVID-19 pandemic, the U.K. Financial Conduct Authority (FCA) issued a statement in July 2020 that reversed a temporary suspension of credit reporting.  The FCRA said that “normal credit reporting should resume” to ensure that the “longer-term integrity and value of credit information is maintained.”  The FCA added that “[a]ccurate credit reporting is essential to responsible lending and preventing individual overindebtedness.”  In a stable financial system, lenders “need to have confidence in the integrity of the credit reporting system to have the confidence to extend credit in [the] future.” Call for input: Ongoing support for consumers affected by coronavirus: mortgages and consumer credit, Financial Conduct Authority (U.K.), July 31, 2020.

During the COVID-19 crisis in the U.K., the Financial Conduct Authority (FCA) gave consumers the right to temporarily stop making payments on their loans and enter into a temporary forbearance.  The FCA said in September 2020 that it “expects [lenders and creditors] to offer a tailored package” of accommodations for consumers, but it is clear that suppression is not helpful.  In a statement, the FCA said that “suspending normal credit file reporting was an exceptional temporary measure and cannot continue indefinitely. Accurate credit reporting is essential to responsible lending and preventing individual overindebtedness. And firms need to have confidence in the integrity of the credit reporting system to have the confidence to extend credit in future.”