Dealers need to “very urgently assess” the implications of recent moves from the Financial Conduct Authority on historical motor finance commissions, says the Vehicle Remarketing Association. While the subject has been gathering prominence in recent weeks following two recent rulings by the Financial Ombudsman, a new programme hosted by personal finances guru Martin Lewis has substantially raised … [Read more...]
Dealers to be investigated over car finance commissions
THE Financial Conduct Authority will probe the motor finance industry over concerns about commission arrangements. In 2021, the FCA banned incentives for brokers to increase the interest rate that a customer pays for their motor finance, but many customers have logged complaints claiming compensation for unfair commission arrangements struck prior to the ban, the Authority said. Motor finance … [Read more...]
Buyers better protected from 31 July
The new FCA Consumer Duty will come into force on 31 July. The Financial Conduct Authority intends for the new Duty to increase levels of consumer protection in retail financial services markets, whilst aiming to promote a healthy environment for firms to thrive. The new Duty will not be a tick-box exercise or be about introducing new processes and paperwork but about a cultural change within … [Read more...]
Payment holiday reassurance for vehicle finance
The millions of drivers with car finance deals will be greatly reassured to know the FCA has their back, said James Fairclough, CEO of AA Cars retail arm. “In effect these guidelines mean that anyone who is worried about keeping up with their repayments because their income has been impacted by the Covid crisis will be entitled to a three-month payment holiday. “Crucially, the FCA’s measures … [Read more...]