THE FCA will ban discretionary commission effective 28 January, 2021. The ban follows a consultation period that began in October 2019. The FCA says consumers are disadvantaged by higher costs from discretionary commission models charged by motor finance brokers and dealers. And that it acts against the interests of the customer. Christopher Woolard, the FCA’s interim chief executive, said: By banning this…
THE BVRLA has warned that leasing brokers should start preparing for the FCA’s move to its new data collection platform. The new data collection platform will be known as RegData and replaces the current Garbiel system. The FCA said: We’ll email firms’ principal user and associated users three weeks before their moving date, with reminders five days and one day to go.…
THE FCA has confirmed temporary guidance for personal leasing customers experiencing financial difficulties during COVID-19. The details were proposed last week by the FCA. The financial regulator said it expected funders to provide immediate support to customers facing payment difficulties as a result of the coronavirus out break. The FCA said in its statement: “It is intended to provide help to those…
THE FCA is expecting funders to provide a three-month payment holiday on lease rentals. It wants to ease the financial pressures on consumers as a result of the coronavirus crisis. The FCA said this morning (17 April 2020): “If customers are experiencing temporary financial difficulties due to coronavirus, firms should not take steps to end the agreement or repossess the vehicle.” It…
THE FCA has announced that it is delaying the publication of its Motor Finance Policy Statement. While the review into the commission structures of motor finance brokers and dealers has been published, the policy statement was due Q2 2020. However, more pressing concerns regarding the coronavirus crisis has meant that publication has been delayed. Christopher Woolard, interim chief executive, said: “Our highest…
ESSEX broker Balgores was hit by an attempted ‘passing off’ or a cloning of one of its ads. The advert was featured on Facebook. Phil Slyfield, sales director, said the cloning had been reported to Facebook and the advertisement taken down. “As far as I understand, the cloners replicate your ad at first and then start to subtly change elements such as…
IN a letter to all credit brokers, the Financial Conduct Authority (FCA) reiterated its focus on putting the customer central to broking operations. It said that brokers should take action to de-risk their operations where there is the potential for customer harm (February 13, 2020). The communication from the FCA is part of the Senior Managers & Certification Regime says Joanne Davis,…
RICHMOND-based broker Kew Vehicle Leasing is taking the lead in customer transparency: it is now openly disclosing the amount of finance commission it receives on all regulated Personal Contract Hire (PCH) agreements. It is the first broker to take this step. In addition, Kew Vehicle Leasing says it will also disclose the lender as a matter of course. Commission structures are the…