NFDA responds to FCA measures
The National Franchised Dealers Association (NFDA) has urged members to take the necessary steps to meet new measures introduced by the Financial Conduct Authority around motor finance.
The FCA announced it is taking immediate action to review motor finance after a rising number of customer complaints around agreed commission arrangements. Some of these complaints were rejected by finance companies but then upheld by the Financial Ombudsman Service.
As a consequence, the FCA has now paused the eight-week deadline for motor finance firms to provide a final response to customer complaints. This pause will last for 37 weeks but may be extended if the FCA requires further time to carry out its review.
The FCA said: “We are introducing the pause without consultation from today to prevent inconsistent and inefficient outcomes for consumers while we assess the issue and determine the best way forward.”
It has also said that customers will have 15 months to refer complaints to the Financial Ombudsman rather than six months.
Sue Robinson, chief executive of NFDA, said: “NFDA will support its members and monitor any further developments from the Financial Conduct Authority and Financial Ombudsman Service on this issue. The FCA are engaging with NFDA and have requested a meeting as soon as possible.
“With these measures coming into force immediately, we strongly encourage our members to read what is required.”
