Car financing crackdown ‘to save drivers £165m’
Industry News | 15/10/19
The UK’s financial regulator has announced a crackdown on the car financing industry which it claims will save drivers £165m. The Financial Conduct Authority wants to ban the way that some car dealers and brokers make commission on sales.
It said that some dealers make commission on the loan’s interest rate, which they set.The FCA said this “creates an incentive for brokers to act against customers’ interests”.
Some brokers and car retailers make a commission on the interest rate they charge customers who take out a loan to buy a car. The higher the interest rate, the higher the commission.
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