Credit, Collections & Insolvency News
In response to last month’s Court of Appeal ruling affecting commission disclosure practices, the National Association of Commercial Finance Brokers (NACFB) has swiftly enhanced its support for ,embers by issuing revised compliance templates and offering targeted guidance. The trade association’s proactive approach has included tactical support from the outset and culminated in the revision of…
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The Court of Appeal has sided with consumers against banks and lenders in a motor finance test case, ruling that a broker could not lawfully receive a commission from the lender without obtaining the customer’s fully informed consent to the payment. Consumers who complained about ‘secret’ commissions on car loans, in a landmark ruling. Lawyers…
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The Financial Conduct Authority (FCA) is extending its investigation into the motor finance market, saying it will set out the next steps of its review into discretionary commission arrangements (DCAs) in May 2025, rather than this September. The regulator said that firms involved in our review have engaged with us constructively, but many have struggled…
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New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in February 2024 by 1% compared with the same month in 2023. The corresponding value of new business was at a similar level to February 2023. In the first two months of 2024, new business by…
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As the Money Saving Expert encourages consumers to claim for potentially unfair motor vehicle credit arrangements, RSM UK is warning that credit providers could face increased operational pressures. In January, the Financial Conduct Authority (FCA) announced it was undertaking a review of historic car finance arrangements, and would take regulatory action if widespread misconduct means…
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New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in November 2023 by 7% compared with the same month in 2022. The corresponding value of new business was 5% lower over the same period. In the eleven months to November 2023, new business volumes were…
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The Financial Conduct Authority has announced that it begin a a study of the motor finance industry, amid rising tensions between consumers and lenders on discretionary commission arrangements. In 2021, the FCA banned discretionary commission arrangements. This removed the incentive for brokers to increase the interest rate that a customer pays for their motor finance. The FCA…
Read moreA study by Ford Credit has found that more people are now prioritising saving for a car (24%), than for a house (18%) or home renovations (19%). The research found that one in five still believe they will be able to get a foot on the housing ladder, whilst over a third (38%) have given…
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New complaints data from the Financial Ombudsman Service (FOS) has shown that complaints relating to motor issues now make up 25% of all cases for the second quarter (Q2) of this financial year, July to September 2023/24. These increasing complaint levels have arisen in two separate sectors. From 1st July to 30th September 2023, on…
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New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by 3% in October 2023 compared with the same month in 2022. The corresponding value of new business was 2% lower over the same period. In the ten months to October 2023, new business volumes remained…
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Motorists are set to spend a record 1.5 million used cars on finance this year borrowing £23 billion on car finance new research by AA Car Finance has revealed. Consumers bought 388,309 second-hand cars on finance in the first three months of 2023, up from 379,512 the previous year. If current trends continue, consumers will…
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Almost one in five motorists (18%) are no longer “brimming” their tank when they fill up with petrol or diesel thanks to rising mortgage and rent costs according to research by Startline. The impact of high housing expenditure on personal finances also means 12% have stopped using their car altogether while 10% want to swap…
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Between January 2020 and March 2023, the proportion of clients accessing debt advice who have a car finance debt has risen by 14.8%. In the same period, the average balance of a client’s car finance debt has increased by more than 20%, from £8,077 to £9,705. The charity’s research also found that clients with car finance debt tend to…
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