As part of our drive to become a smarter regulator, we have introduced a new consumer credit return.
The return will replace 2 existing returns, with the aim of replacing 4 more in the future.
We have confirmed a new regulatory return for the consumer credit activities of:
- credit broking
- providing credit information services
- debt adjusting
- debt counselling
Read our Policy Statement PS25/3[1]
The changes help streamline our data collection process so that we collect only what is necessary for the effective supervision of firms, ensuring they can focus on high-value reporting that supports better consumer and market outcomes.
Significant industry engagement – as part of the initial design and through the consultation[2] itself – has enabled us to create a return that better aligns with existing industry practice and reduces the impact on firms from providing the information required. The return is designed to ask firms tailored questions, reflecting their specific business models.
Stakeholder feedback has enabled a far more proportionate approach and has led to the removal of 28% of the questions we initially proposed.
The return will provide improved insights on a sector that supports more than 40 million consumers, including some of the most vulnerable in society. It will also enable us to better support consumers and focus our work where harm is greatest.
Although we had planned further future work on consumer credit data, as part of our work to support growth[3], we have taken a pragmatic decision to slow down the pace of change, recognising the burden that new data requests impose. We have therefore decided to pause work to replace all the remaining consumer credit returns, to:
- Allow firms more time to implement existing changes.
- Assess the impact and value of the new returns before deciding what the FCA’s future data needs may be.