You are here: Home - News -

Experian and Clear Score merger will not negatively impact mortgage market – CMA

by:
  • 28/08/2018
  • 0
Experian and Clear Score merger will not negatively impact mortgage market – CMA
The competition regulator believes the mortgage market would not be adversely affected if it was to approve the merger of Experian and Clear Score.

 

However, the Competition and Markets Authority (CMA) is conducting a full review of the proposed merger between the two credit comparison services as it has concerns over other areas of overlap.

In publishing details of its review today, the CMA noted that the firms have a low share of the supply of credit comparisons for mortgages, that they face extensive constraints from larger competing credit comparison platforms (CCPs) and that they also face constraints from outside the market.

The initial decision therefore concluded “there was no realistic prospect that the merger would result in a substantial lessening of competition (SLC) in the supply of CCPs for mortgages,” the CMA said.

“Subject to any further evidence submitted… we are not currently minded to investigate this theory of harm further. We do, however, welcome reasoned submissions any parties may wish to make in this regard,” it added.

 

Competition threats

In contrast, the regulator highlighted four particular areas where it felt there were significant competition concerns and questions to answer about the merger.

These were:

  • the supply of CCPs for loans in the UK;
  • the supply of CCPs for credit cards in the UK;
  • the supply of credit checking tools (paid-for and free) in the UK; and
  • the supply of pre-qualification services to CCPs in the UK.

The CMA has a range of remedy tools and could potentially block the merger if it found it was to result in substantial lessening of competition.

The consultation period on the proposed review is open until 11 September.

 

 

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:
To Let sign
Rental demand up as landlords are forced out – ARLA

Rental demand hit its highest level this year in July as more tenants were looking for homes than any other...

Close