IT’S clear that leasing brokers must consider good customer outcomes to ensure full compliance with Consumer Duty.
The Financial Conduct Authority (FCA)’s recent report – Consumer Duty implementation: good practice and areas for improvement – reminds businesses of the consumer outcomes required by Consumer Duty and sets out good practice as well as areas for improvement.
The FCA has reiterated that it will act ‘where it identifies firms delivering poor customer outcomes’.
So, what does that mean for brokers?
According to the BVRLA, one of the areas that creates the most complaints is end-of-contract damage charges in lease contracts, so that has to be a focus. Consumer Duty states that businesses must be ‘proactive in delivering good customer outcomes’.
Damage charges can be confusing for drivers who, even with information from the BVRLA Fair Wear and Tear Guide, are often unclear on whether penalty charges are really fair. That’s where new technology, like the Wondle app can help support customers.
Leasing brokers can supply drivers with the Wondle app which uses AI to scan vehicle damage and assess whether it falls within fair wear and tear. If not, the driver can view estimated lease penalty charges and compare those with repair costs from Wondle’s repair network.
This allows customers to make an informed decision on the best way forward. To date, Wondle is reporting a 25% reduction in customer complaints for companies using the app.
“It is clear from this latest Consumer Duty update just how important it is for firms not to just wait and see if the FCA will intervene. End-of-contract damage charges are one of the few variable charges involved in a lease contract and also one of the most difficult for consumers to assess for themselves. Being proactive with drivers is absolutely critical to customer satisfaction.”
Consumer Duty came into effect for open products and services on 31 July 2023 with the aim of setting ‘higher and clearer standards of consumer protection across financial services.’ Closed services will also be regulated from 31 July 2024.
Find out how Wondle can help you with Consumer Duty
Broker News is working with Wondle to provide brokers with a special price:
- 1 month free trial then £166+VAT per month (paid annually);
- or £199+VAT paid monthly.
Contact Simon Carr (Simon@wondle.io) or Matt Cranny (Matt@wondle.io) for further information and to book a demonstration. Or visit the Wondle website.
Broker News Awards 2024 – the winners
The Broker News Awards 2024 – supported by Fleet Procure – produced outstanding winners, with Synergy taking the Broker of the Year title
Broker News Newsletter 24 April 2024
Catch up on the latest leasing broker news in the 24 April 2024 Broker News newsletter
Leasing broker fleet down, but BCH is rising: analysis of BVRLA broker survey H2 2023
Analysis of the BVRLA leasing broker survey for H2 2023 shows the broker fleet is down, but BCH is on the rise
Novuna Vehicle Solutions and Select Lease by Mobilize add support to the Broker News Awards
Novuna Vehicle Solutions and Select Lease by Mobilize add support to the Broker News Awards 2024, which takes place in London on 25 April
Guest list for the Broker News Awards 2024
The guest list for the Broker News Awards 2024 contains a great list of the 85 leasing brokers, funders, suppliers and OEMs attending
Leasys UK now offers comprehensive short term rental service
Leasys UK announces a comprehensive short-term rental service. Customers can choose from a diverse range of vehicles
Laura is a writer and marketing consultant for Broker News, with extensive automotive experience from senior marketing roles with RBS/Nat West, Lombard Vehicle Management and Unipart. She is also a self-confessed petrol-head.
