Quotevine Chief Executive Daniel Layne said some concerns remain over areas of the ban, and more clarity is needed – including specific definitions around which vehicles it applies to – as well as the potential for unintended consequences such as dealers exploiting the loophole left by excluding personal contract hire (PCH) from the changes, in order to make up lost revenue.
Authority has already confirmed a package of targeted temporary measures to help people with some of the most commonly used consumer credit products.
When asked to compare motor finance to other retail sectors in a traditional store-based setting, 39.6% of consumers placed motor finance a long way ahead or slightly ahead of other retail sectors compared to 26.3% of dealers.
The FCA estimates that its planned changes could save customers £165 million a year by removing the financial incentive for brokers to increase the interest rate a customer pays and give lenders more control over the prices customers pay for their motor finance.
THE Financial Conduct Authority (FCA) is to investigate the motor finance industry. There are concerns that consumers may be borrowing more than they can afford. The FCA stated in its Business Plan 2017/18 that: "We are concerned that [...]