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March 2019

Final FCA Findings on Motor Finance: Cause for concern?

965 1024 Kind Consultancy

The publication of the FCA’s final findings on motor finance has raised alarm bells across the industry this week. Their research shows that some consumers have been overcharged by more than £1000 when taking out loans to buy cars. The FCA has suggested that a key problem is commission models which allow brokers to set customer’s interest rates in order to earn higher commission for themselves. This is especially prevalent in Personal Contract Purchases, which now make up roughly 80% of all new car finance deals, and see the customer renting their car over three or four years. The Finance and Leasing Association claims that…

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