CMA threatens full inquiry for Experian's ClearScore deal

The UK competition regulator has given Experian a week to propose measures to ensure its takeover of ClearScore does not harm consumers or face a full competition inquiry.

The Competition and Markets Authority said the companies were the leaders in credit checking services and each other’s main competitor.

The CMA is concerned that Experian’s £275m takeover of its smaller rival could make the merged company less inclined to innovate to help people understand their finances. The result could be people paying more for credit cards and loans.

The regulator said: “ClearScore and Experian are the first and second-largest providers of free credit score checking in the UK. Experian is also the largest paid credit score checking provider. Millions of people in the UK use the companies’ services each year to check their credit scores, understand their finances, and choose loans and credit cards online.”

The CMA intervened in the merger of credit scoring companies a month after former MP Andrew Tyrie became chairman. As chairman of the House of Commons Treasury committee Tyrie regularly took consumers’ side when questioning bosses of banks and other companies.

The regulator gave the companies until 27 July to offer remedies to its concerns before being referred for an in-depth phase 2 investigation, which would be costly and take many months.

Experian announced the deal in March. It said the takeover would combine complementary businesses to the benefit of consumers while keeping separate brands.

Experian shares edged down 0.6% to £19.21 at 08:17 BST.