FCA consumer credit reporting changes for some regulated activities

Last week the FCA confirmed its plans to introduce a new regulatory return for consumer credit firms who engage in certain regulated activities. In September 2024 we reported (Consumer credit: the FCA is changing its data requirements) on the FCA's proposals (set out in consultation paper CP24/19), which will significantly change the way consumer credit firms report on the applicable regulated activities of Credit Broking, Debt Adjusting, Debt Counselling and Providing Credit Information Services.

The FCA is introducing these changes in order to both enhance the quality of the data it collects and to improve regulatory oversight and efficiency. It has reported that consultation feedback was largely positive, welcoming the structure and format of the new return.  In response to consultation feedback, the FCA has adjusted the original return by reducing the number of questions, improving data elements of the return and providing clearer guidance on how to respond to certain questions. 

The new regulatory return will replace elements of CCR002 (Consumer credit data: Volumes) and CCR007 (Consumer credit data: Key data for credit firms with limited permission). 

The FCA has now included five mandatory sections on the new return that firms must complete.  These are as follows:

• Permissions
• Business model
• Marketing 
• Revenue
• Staff 

The FCA notes that it is in the process of reviewing all FCA credit-related returns, and expects to gradually replace all its existing CCR returns in the long term. However, it has decided to slow down implementation of the remaining phases to lessen the burden on firms as well as to enable assessment of the impact of the new return. In the interim period, some of the data elements of the new return will overlap with their other returns and the FCA are working separately on adjustments that will reduce the effects of any duplication.

The new requirements are effective as of 7 May 2025. All firms with permission for the relevant regulated activities will be expected to submit the new regulatory return in line with their usual reporting cycle.  

Please contact Alice Overton or Amirah Adekunle-Fowora for all assistance with your consumer-credit related legal queries.