Dealers urged to prepare for Consumer Duty
Dealers are being advised to reassess the customer journeys and deal processes within document management and DMS platforms ahead of the introduction of the new Consumer Duty regulations on 31 July 2023.
The warning comes from automotive technology company Mad Devs, which supports dealers across the UK with its iStoreDOCS, iTrackLEADS and iConnect products.
David Boyce, managing director of CEO of Mad Devs, said: “The new Consumer Duty regulations raise the bar on the standards dealers are expected to meet. To meet the new requirements and avoid a hefty fine from the FCA, it’s important that dealers revisit the customer journey to ensure that it meets the need to ensure good customer outcomes. Ensuring that these standards are built into the deal process and hosted in a secure cloud environment will help dealers to remain compliant.”
The Consumer Duty regulations establish greater and clearer consumer protection standards throughout the sector, and dealers will be required to behave in a way that provides good customer outcomes.
Under Consumer Duty, businesses must deliver and evaluate four outcomes, including price and value. Firms must do fair value assessments to demonstrate if the price a consumer pays for a product or service is reasonable in comparison to the overall benefits they can expect.
The Financial Conduct Authority (FCA) has threatened ‘swift action’ against individuals who disregard its new Consumer Duty guidelines.
