The Treasury Select Committee has finally
produced its report on the impact of multiple credit searches on
consumers’ credit scores. This follows hearings of evidence on the
subject late
last year.
The MPs’ findings are somewhat equivocal, but they
lean in favour of some regulatory change to restrict the
‘footprint’ effect. They call for the Office of Fair Trading to
“consider the trade-off between the need to prevent irresponsible
lending and the need to ensure consumers feel free to search for
the best deals in unsecured credit”.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The committee stated: “We have not been presented
with unequivocal evidence that application search data is essential
for loan providers. Nor have we been given evidence it is a major
source of consumer detriment.”
The most specific recommendation relevant to motor
finance concerns price-for-risk products. Here the committee wants
to see wider use of quotation searches, which would leave no
footprint in the credit reference system.
Andy Thompson
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
