FIMC recently submitted a response to the Financial Conduct Authority consultation CP276/7 Credit Information Market Study Proposed Approach To Implementing FCA Remedies. The submission can be found here: FIMC submission FCA Consumer Credit Information Final
Summary of our submission
We welcomed the proposals set out in this consultation paper. We are very encouraged that the FCA is endeavouring to improve the information used by the market so as to better promote responsible lending. We agreed that the FCA’s proposals on sharing the data specified should help improve creditworthiness assessments and expand access to welfare enhancing credit for many consumers.
We were particularly pleased to see the proposal to introduce a requirement for firms to report county court judgments (CCJs) and decrees as satisfied when they become aware of settlement. As the FCA points out, only a small minority (12%) are marked as satisfied on the Register of Judgments, Orders, and Fines operated by Registry Trust. Research by Registry Trust found that people can find the process of satisfying a CCJ complex and cumbersome. This is heightened by the fact that people may be facing high levels of anxiety and stress due to money worries. Moreover, requiring firms to inform the courts that a CCJ has been settled (for example by email) would not be onerous. Indeed we are aware of firms that already do this. This is a small change which could have a big positive impact on financially vulnerable consumers and support inclusion.
We made a number of suggestions for further enhancing the proposals:
- Of the 1.2 million judgments registered in 2025, 15% (176,000) were commercial judgments, up from 11% in 2020. The definition of commercial judgments includes corporate and non-corporate; broadly speaking this means limited companies and partnerships/unincorporated businesses/sole traders. As with consumers, the existence of judgments and low levels of satisfactions can affect the ability of businesses to obtain credit. Only 11% of commercial judgments are marked as satisfied. Therefore, although we appreciate that these proposals focus on consumer credit and would exclude business lending, we urged the FCA to make it clear that the proposals on satisfactions apply to commercial as well as consumer judgments and decrees. The Government has a commitment to promote growth and competitiveness which is actively supported by the FCA. Helping businesses, especially smaller and micro businesses, to repair their finances would support sustainable growth.
- We urged the FCA to require partial settlements, where the creditor has accepted a smaller payment, to also be reported to the courts. Ensuring partial settlements, as well as satisfactions, are reported could ensure that CRAs and other credit information providers have a more enhanced view of the relationship between claimants and defendants with regards to outstanding debts. This could encourage CRAs and users of data to take a more nuanced view on the position of vulnerable consumers who have made the commitment to settle at least part of an outstanding debt.
- It is not clear why firms would need 12 months after the date of publication of the Policy Statement to establish a fairly simple system for reporting satisfactions/ decrees. We suggested that a shorter deadline, say six months, be given to comply with the requirement to report satisfactions.
- Current Account Turnover data (CATO) should be included from the outset rather than risk waiting to see how industry-led initiatives progress. Including CATO data would aid fairer lending as well as more responsible lending and provide meaningful support to the national Financial Inclusion Strategy.
- A large proportion of CCJs arise from non-financial debt. We urged the FCA to use its convening power to bring together other sectoral regulators (for example, through the UK Regulators Network) and government departments responsible for the development of the Parking Code of Practice to develop a consistent approach to reporting satisfactions/ decrees and partial settlements.
- We are encouraged that the FCA is seeking to future proof the regime. But, to effectively future proof the approach to financial regulation, so that is more agile and responsive, would require changes in two domains – inside the regulatory perimeter and externally within the wider legislative process.
- The UK legislative and regulatory regime is seriously hindered by the prescriptive approach which requires government to legislate for specific, named ‘innovations’ to be included within the FCA’s regulatory perimeter. As far as we can see, the FCA has captured the right activities in para 3.20 of the consultation paper. But, it may be worth complementing these named activities by adding a general catch all definition along the lines of: ‘any activity relating to the provision and sharing of information used in the provision of consumer credit’.
- Of course, decisions on which activities to include within the perimeter are a matter for government and outside the FCA’s remit. But, the FCA can influence government policy. Therefore, we urged the FCA to work with HM Treasury to amend primary legislation, perhaps via Phase 2 of the reform to the Consumer Credit Act, to incorporate a permissive definition of credit along the lines of the definition above: ‘any activity that allows a consumer to defer a payment or advances consumers sums of money to be repaid at some point, should be considered a form of credit’.