City Watchdog Bans Interest-Linked Car Finance Commission
Law360, London (July 28, 2020, 11:33 AM BST) -- Britain's finance watchdog said Tuesday it will ban motor dealers and credit brokers from handing out commission to employees based on how high they hike up interest rates for buyers.
Car finance brokers will no longer be allowed to receive commission tied to high interest rates, the Financial Conduct Authority said. The rules, which take effect next year, will save consumers £165 million ($212 million) a year, the watchdog said.
"'By banning this type of commission, where brokers are rewarded for charging consumers higher rates, we will increase competition and protect consumers," Christopher Woolard, the FCA's interim chief executive, said. The changes,...
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