Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will bring forward proposals to secure full market participation in real-time data-sharing in the short-term credit market.

The Government has fundamentally reformed regulation of the consumer credit market. The Financial Conduct Authority’s (FCA) new, more robust regulatory regime is improving protections for consumers, including through the introduction of a cap on the cost of payday loans as required by Government.

The Government and the FCA have made it clear to payday lenders that real-time market-wide credit data sharing is key to more effective affordability assessments. In its November 2014 policy statement, the FCA set out there has been substantial progress made by the payday industry, with “the vast majority of the market now participating in real-time data sharing”. The FCA has committed to press the industry for further improvements, and has said it will make rules if it detects any loss of momentum.

The FCA can use its flexible rule-making powers across the consumer credit market where it deems necessary to support its objectives, including protecting consumers.