New CfRC research indicates that some lower-income borrowers are highly sensitive to their credit scores, and this could be negatively impacting their financial behaviours: causing them to prioritise credit repayments over the payment of household bills and other essentials. People in financial difficulty may also be receiving inappropriate messages that encourage them to take on more credit than they can afford.

In November 2022, the FCA identified several serious failings with the current system of credit information reporting. These included poor governance arrangements, systemic inhibitors to innovation, and a lack of comprehensive and accurate reporting. In this blog, we provide our reflections on the FCA's proposed remedies and argue that fundamental changes are needed to the types of information being collected and reported.