Mad Devs fast-tracks compliance update following ruling on finance commissions

Dealer tech provider Mad Devs has swiftly updated its iStoreDOCS platform to support dealer compliance in response to a recent Court of Appeal ruling on finance commissions.

In an unexpected ruling on Friday, the Court of Appeal delivered a judgment that shocked all those involved in lending to fund car purchases who must now ensure compliance by developing enhanced disclosure to avoid liability.

Mad Devs said its updated cloud-based platform enables dealers to upload Finance Commission disclosure documents directly into the deal process, creating a complete audit trail of customer interactions.

Dan Rea, Mad Devs’ sales director, said: "The ruling from the Court of Appeal created turmoil for dealers and their finance providers. We mobilised our configuration team and reacted quickly to enable dealers to enhance their compliance procedures and continue to operate safely and efficiently."

Speaking earlier this week, Adrian Dally, director of motor finance and strategy at the Finance and Leasing Association, reported that thousands of existing agreements may be considered unlawful, having been processed under a compliance structure previously deemed sufficient by both the industry and the regulators.

He said that many in the industry have responded swiftly with initial temporary measures.

"A fairly typical scenario is a two stage thing. Immediately you put in a compliant patch – so you might say we’ve put in a manual process where the information is given verbally, for example, and recorded, and then there’s a physical sheet of paper to sign.

"But the better way is to hardwire into your systems through your software and your processes, and that takes time to build."