The Financial Conduct Authority has commenced a probe into the workings of the credit information market, amid concerns that some consumers are not getting a fair shake when applying for loans and credit cards.
The regulator says vulnerable customers for whom a lender's decision is more finely balanced are most likely to be affected if the credit information market is not working well.
Christopher Woolard, FCA director of strategy and competition, says: "We have launched this market study as we have identified concerns about the coverage and quality of credit information, the effectiveness of competition between credit reference agencies, and the extent of consumer engagement."
Areas identified for further study include the purpose, quality and accessibility of credit information, alongside market structure, business models and competition.
Woolard says the investigation will shine a light on how the sector is working now and how it may develop in the future. It will also look at how the markets for credit information work in some other countries and what the UK market might learn from them.
The FCA intends to report back on its findings in Spring 2020 and suggest remedies where deficiencies are uncovered.