Today, 11 January 2024, the Financial Conduct Authority (FCA) released a statement announcing that they will be undertaking work in the motor finance market. The FCA note that motor finance firms have received an increasing number of complaints because of the historical use of discretionary commission arrangements (DCAs). As a result, the FCA have announced several measures which will come into force immediately as well as steps that firms will have to take to ensure compliance.
Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA) which represents car and commercial retailers across the UK commented:
“NFDA will support its members and monitor any further developments from the Financial Conduct Authority (FCA) and Financial Ombudsman Service (FOS) on this issue.
“The FCA are engaging with NFDA and have requested a meeting as soon as possible.”
“With these measures coming into force immediately, we strongly encourage our members to read what is required.”
*The FCA will be hosting a webinar on 24 January 2024, where they will discuss the measures in more detail – please see link.