The Financial Conduct Authority (FCA) set out proposals to improve how credit information is shared and to reduce “gaps” where someone’s credit file is incomplete or inconsistent across credit reference agencies. The FCA is consulting on changes that would push firms to share the same credit information more consistently across designated agencies, aiming to cut unaffordable lending, errors, and fraud. Consultation closes 1 May 2026.

Why it matters to collections

1. Arrears inflow: More complete files can reduce “wrong-fit” lending, which can lower early-stage delinquency and improve overall book quality over time.
2. Disputes and complaints: Missing or inconsistent data fuels “that’s not my debt” disputes and affordability complaints. If data sharing improves, you may see fewer investigations, fewer escalations, and cleaner resolution paths.
3. Vulnerability risk: Inaccurate or thin files can push people toward costlier credit. Better reporting can support fairer decisions and more sustainable outcomes, reducing broken arrangements later.

The big takeaway

This is an upstream change that can alter your downstream workload. It could reduce preventable bad debt, but it may also shift approval rates and change which customer segments roll into arrears.

Who’s affected (quick view)

• Lenders: tighter underwriting, fewer “unknowns,” and potentially fewer early arrears.

• Borrowers: fewer errors and clearer affordability outcomes (but some may see fewer approvals).

• Collections teams: fewer noisy disputes, more time on genuine hardship cases, and better segmentation if the data is cleaner.

What could change in the real world

Scenario 1: Fewer “thin file” approvals becoming fast arrears.

Scenario 2: Cleaner fraud signals and fewer long “prove it” cases.

Scenario 3: Earlier routing into sustainable support and forbearance, improving plan performance.

B2B vs consumer angle

• Consumer: affordability, vulnerability, and complaints risk are front and centre.

• B2B: still relevant for sole traders/directors and for broader lender appetite toward SMEs.

Actions for credit and collections teams

1. Tighten your “customer not known / fraud” workflow: evidence standards, SLAs, and handoffs.
2. Refresh affordability and forbearance playbooks: scripts, income/expenditure, breathing space, vulnerability flags.
3. Improve data hygiene from day 1: contact details, address history, clear audit trails.
4. Reduce unnecessary escalation triggers where a dispute is plausible.
5. Watch lender policy shifts: if thin-file approvals drop, your segmentation and messaging should follow.
6. Train frontline agents: a cleaner credit system raises customer expectations, so scripts need to be clear, calm, and compliant.

What to watch next

• Consultation feedback and final FCA guidance.

• Any change in how quickly firms update credit files.

• Whether early-arrears volumes fall, but hardship cases become a bigger share of work.

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