Overview
- The review targeted products that only report regular payments to credit reference agencies and typically sit outside regulated credit.
- The FCA found many firms failed to explain limitations and that selective reporting can misstate a customer’s repayment capacity to lenders.
- Following regulatory engagement, five providers have stopped offering these products and others have changed their models and marketing.
- The watchdog is working with credit reference agencies on clearer reporting standards and is considering whether to take further action.
- Consumers are urged to seek free guidance from the government-backed MoneyHelper service for ways to build credit or manage debt.