MORE needs to be done on educating customers on the various types of car funding available, says the Fleet Alliance Group. The Glasgow-based broker company reckons the industry has a duty to educate the general public on the different providers and products in the market.
Although Fleet Alliance welcomes the Financial Conduct Authority’s regulations controlling finance broker commissions – where the amount paid is linked to the interest charged on the loan – more needs to be done on distributing information about the financial products on the market. Fleet Alliance includes work to prevent media scaremongering in its views.
Managing director Martin Brown said:
“The FCA has been very clear that it wants to treat customers fairly and we welcome its clampdown on some unwelcome practises from certain car finance brokers. But I think we need greater differentiation between car finance brokers offering car deals based on Personal Contract Purchase (PCP) plans or other forms of car finance, and car leasing brokers offering rental hire, such as Personal Contract Hire (PCH), which this regulation is not aimed at.
“They are very different forms of vehicle acquisition and should not be confused. The public is not helped by a national media that continues to happily mix up leasing rentals and PCP payments as if they are one and the same thing.”
We have featured several articles on this subject. Click on the links below to learn more:
- Regulatory threat to PCH on treating customers fairly
- Brown queries suggestion that FCA regulates leasing brokers differently
- FCA presents on commissions at BVRLA Leasing Broker Committee