Overview

This bill amends the Financial Services and Markets Act 2000 to require lenders to consider a borrower's rental and council tax payment history when assessing their creditworthiness for loans and mortgages.

Description

This bill mandates that firms offering credit-related services and those involved in regulated mortgage contracts must include rental and council tax payment history in their creditworthiness assessments. This amendment is added to Section 64A of the Financial Services and Markets Act 2000, instructing the Financial Conduct Authority (FCA) to ensure compliance by firms. The bill applies across England, Wales, Scotland, and Northern Ireland and comes into effect upon passing.

Government Spending

The bill doesn't directly specify any changes to government spending. The impact is indirect, potentially affecting government revenue through altered lending patterns and any subsequent impact on tax revenue. No specific figures are provided within the bill text.

Groups Affected

• Borrowers: Individuals with a history of consistent rental and council tax payments may find it easier to obtain credit. Those with poor payment records might face stricter lending criteria.
• Lenders: Financial institutions will need to adjust their credit assessment processes to incorporate the new requirements, potentially incurring administrative costs.
• Financial Conduct Authority (FCA): The FCA will be responsible for overseeing the implementation and enforcement of the new rules.

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