New guidance has been published by credit reference agencies (CRAs) to advise lenders on how to report credit data when they grant consumers forbearance as a result of COVID-19. The guidance aims to deliver the objective set out in the joint letter from the Chancellor, the Governor of the Bank of England, the CEO of the FCA that lenders should record flexible payment arrangements “accurately so as to prevent an adverse impact on a customer’s credit file”.
The CRAs worked together with UK Finance and the FLA on the guidance. To address concerns and questions consumers may have, Equifax has published FAQs on its website and is working with Fair4All Finance to raise awareness of the guidance among credit unions and Community Development Financial Institutions (CDFIs).