This article is for general information only. It is not financial advice and does not recommend a specific lender or product.

The Financial Conduct Authority (FCA) has published a consultation paper, CP26/7, proposing significant changes to the way credit information is collected, shared, and corrected in the UK. The proposals are not yet in force. The FCA is still reviewing responses, and any new rules will come into effect around 12 months after a final policy statement is published.

Here is what the two headline proposals mean in plain English.

What are the two main proposals?

1. Mandatory multi-bureau data sharing

At present, lenders choose which credit reference agencies (CRAs) they report data to. Some report to only one or two of the three main agencies: Equifax, Experian, and TransUnion. That means your credit file at one agency may look very different from your file at another.

For people with a thin credit file (limited borrowing history), this gap can be particularly damaging. A lender checking the "wrong" agency may see almost no data and decline an application, even if other agencies hold a fuller picture.

CP26/7 proposes that lenders be required to share data with all major CRAs, not just the ones they choose. If adopted, this could reduce the inconsistency between files.

2. Better error-correction and CCJ-satisfaction reporting

Credit files sometimes contain errors: a payment marked as missed when it was made on time, or a County Court Judgement (CCJ) that was satisfied (paid off) but not updated to show that. Correcting these errors can be slow and difficult.

The proposals would require faster and more consistent updating of records, including clearer reporting when a CCJ has been settled. A satisfied CCJ still appears on a credit file, but its impact on lending decisions can be different from an unsatisfied one. Delays in updating that status can unfairly affect borrowers.

Why does this matter for borrowers?

Credit decisions, including whether a lender will offer credit and at what rate, depend heavily on the information in your credit file. If that information is incomplete, out of date, or inconsistent across agencies, the outcome of any application can be unpredictable.

These proposals would not eliminate credit scoring or make borrowing easier for everyone. They aim to make the underlying data more accurate and more consistent, so that decisions are based on a fuller picture.

Who may be affected?

These proposals are most relevant to borrowers who:

  • Have a thin credit file, perhaps because they are new to borrowing, have moved recently from abroad, or have rarely used credit
  • Have had a CCJ that has since been paid off but may not be correctly marked as satisfied across all agencies
  • Have spotted inconsistencies between their credit files at different agencies and want to understand why
  • Are preparing to apply for a mortgage, car finance, or a personal loan and are unsure what a lender will see

If none of the above applies to you, changes to CRA reporting rules may have little day-to-day effect on your borrowing experience.

What can you do in the meantime?

It is worth checking your credit file at all three main agencies before making a significant application. Each agency holds slightly different data, and checking all three gives a fuller picture of what a lender might see.

If your file contains an error, you have the right to raise a dispute directly with the relevant CRA. The process can take time, but it is worth doing before applying for credit.

If you have an unsatisfied CCJ and are unsure of your position, free debt advice services can help you understand your options without any obligation to borrow.

What to read next

For a fuller explanation of how credit files and scores work, and how different agencies affect your applications:

Sources

Related guides