Close Brothers Motor Finance has called on dealers to change their attitude towards industry regulation in order to avoid financial penalties and a possible loss of consumer confidence.
Close said its chief executive officer James Broadhead had been having conversations with dealers, and had found that dealers needed become more comfortable with regulatory requirements rather than seeing them as an unnecessary burden.
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Broadhead said: "As an industry, we must make regulation less of an administrative burden and more of a positive action that protects both dealers and customers. Dealers must start seeing themselves as finance and insurance sellers if they are to remain competitive in the future. No dealer can afford to stop selling motor finance therefore compliance with regulation is critical."
Close said it had found that many dealers were still having difficulty adjusting to the Financial Conduct Authority (FCA) after years of working under the Office of Fair Trading (OFT).
In addition, Broadhead said: "Most of our dealers see compliance of consumer credit as a necessary evil. This needs to change. Having a thorough understanding of regulation is a positive, helping dealers to give their customers the best purchasing experience possible and ultimately helping dealers to grow their businesses. As an industry, we need to stand together to make sure dealers understand what is required of them."
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