Gareth Thomas – 2016 Parliamentary Question to the HM Treasury
The below Parliamentary question was asked by Gareth Thomas on 2016-06-09.
To ask Mr Chancellor of the Exchequer, if he will take steps to require the Financial Conduct Authority to require credit rating agencies to improve their reporting of an individual’s credit record; and if he will make a statement.
Harriett Baldwin
When consumer credit regulation transferred from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA) on 1 April 2014, the Government decided that, given their central role in helping to inform responsible lending decisions, CRAs should be directly regulated by the FCA. As such, every credit reference agency’s fitness to trade is being assessed as part of the FCA’s robust authorisation process
Information on a credit report should be purely factual; for example, if arrears were incurred, those lenders who share data through the credit reference agencies will have recorded them.
A credit reference agency is able to correct factually inaccurate information. However, it is the original lender or organisation that supplies credit to a consumer that provides the agencies with the information held on a credit report. Where inaccurate information has been reported to a credit reference agency, a consumer must contact the lender in the first instance.
If a problem with inaccurate data is not resolved satisfactorily with a lender, consumers are able to complain to the Information Commissioner’s Office (ICO), which is able to investigate and take action where necessary. The ICO is the UK’s independent body set up to uphold information rights, and it enforces the Data Protection Act.
