Consumer Credit - Product Sales Data Reporting

It is unlikely that it is the sort of data firms will currently hold. The FCA has been challenged by the industry on this and they have expanded the data sets to attempt to capture data that firms do hold. They are also allowing an indication where certain data is not available.

There will be a need to provide certain data in relation to back books, then a need to provide ongoing quarterly data on new and existing agreements. The data is broken down into Core agreement data, Borrower and affordability data, Charges and fees, Arrears and forbearance. The FCA has created an Excel version of the data elements found in the instrument and Handbook to aid the review of the required data

The FCA specifically calls out that the data will enable it to monitor whether good outcomes are being delivered in compliance with the Consumer Duty. It says it will also help to monitor compliance against Handbook requirements in CONC and Vulnerable Customers Guidance. It will enable identification of “outliers” in the market.

The proposal was for data to be provided to the FCA from 1 Jan 25, although respondents replied saying this didn’t create sufficient time for compliance. Based on analysis, the FCA have increased the implementation period so that large firms (£20m plus) have 14 months and small firms (£2 - £20m) have 20 months to prepare. This will involve significant systems to be developed and historic agreement analysis.

The requirements bite on firms with outstanding balances and/or new lending above £2m (increased from the original proposal of £500k). However, existing return is maintained for High Cost Short Term Credit that falls below this level.

There is a large amount of data fields to work through. Examples of the sorts of potentially problematic data are:

• Whether the agreement is modified, novated or an assigned agreement
• Credit broker details and commission paid / received
• If the agreement is fixed sum or running account credit. If it is open ended.
• The purpose of the credit
• The total amount of credit (not clear what you do for multiple agreements)
• How the sale was made
• Information linked back to financial promotions
• Type of goods or services provided by supplier financed by agreement

Product owners, compliance and legal should carefully examine the data the FCA is asking for. Firms should not just assume that if they don’t have the data, this is acceptable (even if they can indicate that they do not have it in the report). If it is data the FCA wants, you should think about whether it is data you should have, at least going forward.

You should be on the front foot on that. Does this new data tell you things about your business that you had not known? Also, does the data now make certain aspects of your business jump out or make it more transparent in a way that might not have been the case historically?

Teams need to understand how the data will represent the business to the FCA going forwards.