"Strong vehicle sales are vital to the UK economy and it is important that any consumer credit regulation is proportionate and does not harm this", said Sue Robinson, Director of the National Franchised Dealers Association* (NFDA), commenting on the Financial Conduct Authorities (FCA) Business Plan for 2017/18.
The FCA have stated in their Business Plan that they will carry out an exploratory enquiry into Motor Finance as they believe that there might be conflicts of interest and irresponsible lending in the sector. Following this review they will assess if there is any need to intervene in the market.
Robinson continues, "Franchised dealers are highly regulated under the FCA and provide consumer finance under the rules set by the regulator. NFDA will liaise with the FCA on the exploratory enquiry to ensure that the outcome is satisfactory for both consumers and dealers.
"There is a risk from FCA intervention if it is not sensitive to the needs of the car market. It is important that consumers are able to access finance easily to be able to purchase a vehicle to fulfil their needs such as getting to work. Also, at a time when legislators and environmental campaigners are looking for car owners to ditch older more polluting vehicles consumers need to be able to finance a replacement vehicle."
Notes to Editors:
About the RMI
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.