FCA Wants Credit Data Shared Across All Agencies by 2026

The FCA dropped new rules today. Financial firms that share credit info with one agency will have to share with all designated credit reference agencies under proposals launched this morning.

Alison Walters runs consumer finance at the FCA and she’s pretty clear about why this matters. “Good-quality data is crucial for consumers managing their financial lives,” Walters said in the announcement. The regulator wants borrowers to have complete credit files that actually reflect their real financial behavior. Right now, that’s not happening. Credit agencies like Experian and Equifax don’t always get the same data from lenders, which creates gaps that hurt consumers when they apply for loans or mortgages.

The consultation runs until May 1, 2026.

These credit reference agencies basically collect everything about your financial life – payment histories, missed payments, debt levels, the works. Lenders use this info to decide if they’ll give you a loan and what rate you’ll pay. But here’s the problem: when the data is incomplete or wrong, consumers can’t access credit they should qualify for. Or worse, they get approved for loans they can’t actually afford. The FCA’s Credit Information Market Study from December 2023 found major holes in how this data gets shared between firms.

The new rules don’t just cover data sharing. Lenders will have to mark county court judgments as satisfied once someone pays off their debt. That’s a big deal because CCJs can stick around on credit files even after you’ve paid them off, making it harder to get credit later. The FCA wants firms to update these records automatically.

A Credit Information Governance Body got created to watch over all this.

The regulator is asking for feedback from banks, credit agencies, and consumer groups during the consultation period. Industry players like major mortgage lenders and credit card companies will need to change their systems to comply with the new requirements. That’s going to cost money and take time, but the FCA thinks it’s worth it to fix the current mess in credit data sharing.

Consumers can check their credit reports for free through MoneyHelper while this consultation runs. The FCA basically wants people to see what’s in their files and spot any errors or missing information. Credit agencies already offer free reports, but many consumers don’t know they can access them or don’t bother checking regularly.

The December 2023 study that sparked these proposals found some pretty concerning gaps. Some lenders share full data with one agency but only partial info with others. Some don’t share certain types of credit data at all. And some agencies have better coverage of certain types of lending than others. All of this creates an uneven playing field that can hurt consumers. Related coverage: FCA Picks Four Firms for Stablecoin.

Banks and building societies will probably push back on some of these requirements during the consultation. Sharing data with multiple agencies costs more money and requires additional IT systems. But consumer groups have been asking for these changes for years, arguing that incomplete credit files unfairly block access to affordable credit.

The Credit Information Governance Body will work with industry participants to make sure the new rules actually get followed. It’s not clear yet how much enforcement power this body will have or what happens to firms that don’t comply. The FCA didn’t spell out specific penalties in today’s announcement.

Credit reference agencies are expected to support the proposals since more comprehensive data sharing could make their services more valuable to lenders. Experian, Equifax, and TransUnion already compete for lender clients, and having access to the same comprehensive data could level the playing field between them.

The consultation document CP26/7 lays out exactly what firms will need to do and when. Credit and mortgage companies will need to share consumer data uniformly across all designated agencies. The FCA wants this to reduce discrepancies and improve accuracy for everyone involved.

Some industry watchers think these changes are long overdue. Credit data sharing practices haven’t kept up with how the lending market has evolved, especially with the rise of fintech lenders and alternative credit products. The current patchwork system made sense when there were fewer players, but it’s become a barrier to innovation and fair lending.

The FCA plans to finalize the rules shortly after the consultation ends in May 2026. Firms will then have time to update their systems and processes before the requirements take effect. The regulator hasn’t said exactly when compliance will be mandatory, but it’s likely to be sometime in 2026 or early 2027. More on this topic: Trump Bans Anthropic Tech from All.

Consumer advocacy groups have welcomed the proposals but want stronger enforcement mechanisms. They’re concerned that without real penalties, some firms might not bother complying fully with the new data sharing requirements.

The changes come as the credit market faces increased scrutiny over its role in consumer financial wellbeing. Rising interest rates and cost of living pressures have made access to affordable credit more important than ever. The FCA thinks better credit data sharing can help ensure that consumers who deserve access to credit can actually get it at fair rates.

Industry response will be crucial during the consultation period. The FCA needs buy-in from major lenders and credit agencies to make these changes work in practice.

The proposals could affect millions of UK consumers who currently face credit decisions based on incomplete information. According to industry estimates, roughly 15% of credit applications get rejected due to data gaps rather than actual creditworthiness issues.

Major high street banks including Barclays, Lloyds, and NatWest will need to overhaul their reporting systems to meet the uniform sharing requirements. Smaller fintech lenders, which often share data selectively to reduce costs, face particularly significant operational changes under the new framework.