FCA Mulls Crackdown To Tackle Overcharges In Car Financing
Law360, London (March 4, 2019, 11:59 AM GMT) -- The Financial Conduct Authority set out proposals Monday to fix commission structures in the motor finance sector after concluding that car dealers are overcharging customers who take out loans to buy cars by approximately £300 million ($396 million) in interest payments every year.
The regulator said it is considering remedies that will help fix commission models in the sector, which could include strengthening its existing rules. The watchdog will also explore the impact of banning certain types of commission or limiting broker discretion over interest rates.
The watchdog warned that motor dealers, which act as car finance brokers, are charging each...
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