The financial crisis brewing in the UK’s motor finance sector could rival the infamous £50 billion Payment Protection Insurance (PPI) consumer scandal, the Financial Conduct Authority's (FCA) top legal chief has conceded.
Stephen Braviner Roman, the FCA’s general counsel and executive director in charge of legal affairs, told the influential panel of lawmakers on December 10 that the fallout from hidden commissions on car loans could result in a much bigger industry-wide bill than previously thought.
The FCA had already been investigating "discretionary commission arrangements" (DCA), where buyers could have been overcharged when lenders allowed their intermediaries such as car dealers to increase the amount of car loan payments.
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Spotlight on the customer
In this issue:
What consumers really want - trends and habits dealers must understand to provide the right buying experience
Barriers to EV purchase - many private motorists need extra help before they take the plunge
Delighting used car buyers - it's essential for retailers to offer tailored experiences and great value
Aftersales customer care - valuable interactions are vital as dealerships face fishing in a diminishing pool
A customer-first future - Steve Young, ICDP MD, gives AM an exclusive insight.
Read nowAuthor:
Aimee Turner
Deputy editor
AM deputy editor Aimée Turner has been a specialist B2B editor and journalist covering the international transportation sector for more than 20 years.
She has specialised in the significant safety, regulatory, and environmental issues that impact advanced technology businesses in the pursuit of more efficient, safer and sustainable transportation modes.
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