The New FCA (Financial Conduct Authority) rules that are due to come into practice on the 1st April have been published for consumer credit companies.

The new rules include an obligation for commission disclosure to customers before the credit agreement is signed.  This of course is to act as a preventative to any impartiality of a dealership, finance broker or business manager and discourage said broker from recommending products that will earn them more commission over more suitable products for the customer.

The FCA has also made clear that, where able, a quotation search facility should be practiced by firms to aid customers who wish to shop around for credit.

Also, under the new rules, a practice should not leave evidence of an application on file where that customer is not yet ready to apply – this is to prevent the potential damage of the customer’s credit history.So, to cut to the chase, how will these new rules affect auto finance firms?


How will commission disclosure affect New Look Loans?

These changes may spell ‘bad news’ for some firms – particularly those found to be overstepping the line. After all, the new rules are coming into play to best protect consumers and clamp down on any poor practice which may have gone undetected under the previous Office of Fair Trading rules.

In a nutshell – commission disclosure will make certain that you are not being dealt a more costly deal in order for the providers to cash in on a higher commission.

commission disclosure

Any issues found under the new regime will be will be responded to quickly by the FCA and swift penalties will be enforced on any firm or individual found putting their own interest before that of the consumer – including possible enforcement action and consumer redress.

The FCA stated that firms are expected to comply with the ‘spirit’ of the new rules, due to come into play in just a few weeks-time, and not just the ‘letter’ of them and that this announcement will give consumers that added protection from rogue practices, putting the onus on credit providers, making sure they treat customers fairly at all times.

Here at New Look Loans, we have always prided ourselves in putting the customer’s needs first and getting you your dream car, no matter what your finance history. This aim has not changed.

Keeping our customers at the heart of our business, New Look Loans have, and always will, operate a complete transparency policy – there are no hidden costs, never have been.

We specialise in finding reputable motor dealer to all of our customers and do so in order to pass on the benefits directly to the customer.

If you want more information on our policy, or how these new rules may affect you, please don’t hesitate to contact us.