The Financial Conduct Authority has today published its report on the motor finance sector after uncovering concerns about the way in which the sector currently operates.
Jane Tully, director of external affairs at the Money Advice Trust, the charity that runs National Debtline, said: “The FCA has rightly thrown a spotlight on motor finance and we welcome in particular the regulator’s commitment to remind firms of requirements around assessing affordability.
“We should remember that car finance deals are a popular way to access a car that may otherwise be difficult to obtain. However, it is crucial that firms fully assess consumers’ affordability and that consumers are clear on the terms they are signing up to at the outset.
“It is also important that firms consider their responsibility to customers that may be in vulnerable circumstances and ensure they have the appropriate processes in place to identify and support them – through all of the channels availability to them, including through dealerships.”