You are here: Home - News -

Borrowers could pay more for loans if credit score merger completes

by: Paloma Kubiak
  • 20/07/2018
  • 0
The competition watchdog is concerned borrowers could end up paying more for their credit cards and loans if the proposed merger of the two biggest credit reference agencies gets the go ahead.

The Competition and Markets Authority (CMA) said Experian’s proposed merger with ClearScore could reduce competition for people wanting to check their credit score.

It said given they’re the first and second largest providers of free credit score checking, and that Experian is also the largest paid for credit reference agency, the proposed merger could mean the firms are “less likely to innovate to help people better understand their finances”.

As such, the acquisition of the rival firms could potentially lead to people paying more for credit cards and loans.

Experian and ClearScore have until 27 July to respond to the CMA’s concerns, otherwise it will be referred for an in-depth investigation.

The proposed merger was announced in March with the firms expecting the move to get the go ahead later this year.

At the time of the announcement, Charles Butterworth, managing director, Experian UK&I & EMEA, said: “It’s Experian’s goal to deliver the best choice of services to consumers to help them plan and better manage their financial lives.

“Bringing ClearScore into the Experian family is an important step on that journey, allowing us to share knowledge and insight between the two organisations and bring new scale and support to ClearScore’s existing business.

“We’re excited to combine the experience and strength of Experian’s global organisation with those of a successful and rapidly scaling business. And together, we’ll be able to deliver a broader range of products and services that will further improve consumer choice in the UK and beyond.”

Related: See YourMoney.com’s Seven credit score myths busted for more information.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
The 10 biggest mortgage broker stories this week – 20/07/18

Mortgage technology and innovation has been the theme of the week, with market launches coming from Tandem, Clearscore and MoneySupermarket.

Close