"We have identified concerns about the coverage and quality of credit information, the effectiveness of competition between credit reference agencies, and the extent of consumer engagement."
Credit information is used to assess credit risk and affordability across a range of financial services, including mortgages.
The FCA has raised concerns that vulnerable customers are most likely to be affected if the market is not working well, as credit information can impact how much consumers pay for products and how much they can borrow.
The study will focus on the quality and accessibility of credit information, market structure and business models, as well as consumers’ engagement and understanding of credit information and how it impacts their behaviour.
The FCA will report on its preliminary conclusions on these themes in Spring 2020 including, if appropriate, a discussion of potential remedies.
Christopher Woolard, director of strategy and competition at the FCA, said: "We have launched this market study as we have identified concerns about the coverage and quality of credit information, the effectiveness of competition between credit reference agencies, and the extent of consumer engagement.
"Through the study we will seek to get a better understanding of how this vital market works and will identify remedies, where appropriate, to make it work more effectively for credit information users and individual consumers. This includes considering whether vulnerable customers are disproportionately affected by the way credit information is used, and whether any alternative approaches might deliver better outcomes for consumers."
