A wave of five final notices issued by the Financial Conduct Authority (FCA) to dealers this month could be the ‘first of many’, according to motor finance technology provider iVendi.
One such dealer to be on the receiving end of the FCA recently was London based Motor Spot Limited, which the FCA said had failed to respond to requests and act in an open manner.
According to iVendi, cases such as these should be taken as an indication that the new era of motor finance regulation is finally beginning.
James Tew, chief executive officer at iVendi, said: “To some extent, we have been in a holding pattern since the new FCA consumer credit regime came into effect but, with this first wave of motor dealer notices, we are very much seeing the regulator get down to business.
“Issuing five in a short period of time is, compared to the old system of regulation, actually quite a high number and could be a signal of intent. We believe the FCA is possibly setting out its stall and these could be the first of many.”
According to Tew, iVendi is still coming across dealers who have still not got their heads around all the implications of providing customers with meaningful choice, accurate information and consistency across their organisation.