Taking the lead on motor finance redress
A snapshot of consumers' views on motor finance
In January 2024, the Financial Conduct Authority launched a major investigation into motor finance mis-selling. Following a Court of Appeal decision on commissions, the industry and consumers look to the Supreme Court for clarification and to the FCA for a resolution.
We surveyed 2,000 UK adults who had used car financing or leasing to provide a snapshot of current consumer views on motor finance. Our survey uncovered widespread consumer uncertainty regarding use of commissions in the motor finance sector, with many customers unsure how commission structures may have impacted them.
Millions may be affected, but there’s a disconnect – less than 1 in 3 respondents (28 percent) think the issue applies to them. Furthermore, of those who believe they were affected, only 17 percent believe it applies and plan to complain.
The findings also suggest that trust in car dealerships, banks, and financial service providers has been negatively impacted, with one in two consumers saying their trust has been damaged.
Despite these concerns, the study shows that three-quarters of consumers would still consider using motor finance in the future, underscoring its continued importance in the automotive sector.
How we can help
Firms must be ready to take action once next steps are set out by the FCA later this year. Until then, leaders should prepare for potential requirements such as large-scale remediation programmes, as well as firm-specific supervisory interventions. Preparing now will result in a strategic opportunity to be on the front foot once the FCA requirements are known, and gain a competitive edge.
Helping firms to design remediation and complaints operations and governance, providing independent assurance, and conducting regulatory reviews. We have deep regulatory understanding that includes insight into the latest FCA next steps.
Designing industry-leading risk management frameworks, and identifying all potential risks within a remediation programme are thoroughly identified, with robust controls developed and tested to effectively mitigate them. We craft precise policies, procedures, and controls that enhance risk management, instils customer confidence, and fosters growth.
Designing tailored, comprehensive assessment frameworks and robust operating models to efficiently manage claims and complaints programmes, ensuring a seamless resolution process. We conduct services that help you deal with remediations, and put customers at the beating heart of your business.
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