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Letters: Mind your credit score

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The FCA said that 83 per cent of the firm's DB scheme transfer advice "failed to comply with its minimum required standards, and customers risked financial loss as a result of the poor advice they received".
The FCA said that 83 per cent of the firm's DB scheme transfer advice "failed to comply with its minimum required standards, and customers risked financial loss as a result of the poor advice they received".

[Re: Don’t penalise cash-strapped Brits, FCA warns insurers, 29 September]

As interest rates soar, the FCA’s call to lenders to offer borrowers solutions is a stark reminder that consumers’ needs must remain front and centre.

Against skyrocketing living costs and a mortgage industry in turmoil, our research shows half of lenders are still using outdated credit scoring models which don’t take into account transaction data from consumers’ bank accounts – potentially excluding millions of people who can afford credit.

The lending industry must unlock fairer affordability checks to best support consumers and businesses. New lending models are drawing on real-time data to access banking information such as payment history and income levels, to paint a holistic picture of peoples’ finances.

This is key to promoting financial inclusion, as people need access to safe, affordable and regulated borrowing options now more than ever.

Tasha Chouhan, Tink