“NFDA welcomes Government’s commitment to modernise consumer credit laws, which will make motor finance more accessible for consumers”, said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle dealers in the UK.
Today (16 June 2022), the Government has announced its commitment to reform the 1974 Consumer Credit Act, which includes car finance regulations for hire purchases and PCP agreements.
The legislation review will see the Financial Conduct Authority (FCA) regulate consumer credit to help cut costs for businesses and simplify rules for customers.
Economic Secretary to the Treasury, John Glen said: “The Consumer Credit Act has been in place for almost 50 years - and it needs to be reformed to keep pace with the modern world.
“We want to create a regulatory regime that fosters innovation but also maintains high levels of consumer protection”.
Sue Robinson added: ”We are pleased to see the outdated legislation is now up for renewal. Consumer credit has evolved a great deal since the rise of PCP and electric vehicles, and reformed legislation needs to accompany this.
“We expect a consultation to arise from this in due course and NFDA will respond with retailers’ best interests”.
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.