“Whilst we support the Financial Conduct Authority’s (FCA) new proposals on how it will regulate consumer credit, there is some concern that they may impact on a consumer’s ability to source finance and in turn purchase a car” said Sue Robinson, National Franchised Dealers Association (NFDA) Director.
The FCA today set out its plans for the regulation of consumer credit when it takes over from the Office of Fair Trading (OFT) on 1 April 2014.
The FCA stated the proposed regime will allow them to provide stronger protection and better outcomes for consumers than the existing OFT regime.
FCA regulation will apply to any firm or individual offering credit to consumers, including franchised dealers who offer car finance.
Robinson continued “The NFDA is also concerned about the extra burden these new proposals may put on businesses.
“As it is likely that the penalties for businesses who do not comply with these measures will be high, it is imperative that a strong awareness campaign is undertaken by the FCA in conjunction with trade associations and finance providers.
“We would urge all dealers to engage with the registration process for interim permissions as soon as possible to ensure they will be able to continue to provide credit once the FCA begin to regulate in April 2014.”
ENDS
NOTES TO EDITORS:
Keely Scanlan, Press Officer Tel: 020 7307 3410 Mob: 07825097697 Press Office direct line: 020 7307 3422 Press Office fax: 020 7307 3406 Web: www.rmif.co.uk Email: keely.scanlan@rmif.co.uk The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.
