The transfer of consumer credit regulation to the FCA — what does this mean for motor dealers?
Most motor dealers regularly carry out activities such as introducing customers to finance companies for the purpose of entering into hire and hire purchase agreements and arranging for the discharge of existing finance on vehicles taken in part exchange. This currently requires them to a hold a consumer credit licence from the Office of Fair Trading (OFT) covering categories C (credit brokerage), D (debt adjusting) and/or E (debt counselling).
From 1 April 2014, these will be regulated activities under the new Financial Conduct Authority (FCA) regime for consumer credit. The new regulated activity of ‘credit broking’ will comprise not only introducing customers to finance providers but recommending regulated agreements and assisting with other preparatory work such as completion of application forms.
What steps should motor dealers be taking to ensure they can carry on trading and remain compliant after 1 April 2014? …
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Firms carrying on consumer-credit-related regulated activity need to ensure they are complying with the requirements set out in the Consumer Credit Sourcebook (CONC).
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