Are you up to date with your CONC?

legal updates

FCA require that each financial promotion should not emphasise any potential benefits without also giving a fair and prominent indication of relevant risks. On dealing with several ‘Business Response Forms’ to the Financial

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

The Financial Conduct Authority (FCA) have their own rules concerning credit advertising overlaid on the existing legal framework in the Consumer Credit (Advertisement) Regulations 2010.  They refer to advertising as a ‘financial promotion’. 

A lot of requirements are in line with existing requirements under both the Regulations and Advertising Standards Authority (ASA).  So we see the words ‘clear’, ‘fair’ and ‘not misleading’. 

However, what can give some difficulty in understanding is in CONC 3.3.5.  (CONC by the way stands for Consumer Credit Sourcebook).  FCA require that each financial promotion should not emphasise any potential benefits without also giving a fair and prominent indication of relevant risks.  On dealing with several ‘Business Response Forms’ to the Financial Ombudsman service (FOS) we have noted one particular issue which can lead to problems regarding sales of PPI which FOS picks up upon. 

This arises when the customer indicates they are potentially going to sell the vehicle after a shorter period than the PPI will run for, when part of the finance deal.  Typically the customer may say they change the car after three years but have been sold finance/PPI on a longer 5 year term.  If you are emphasising the benefits of a 5 year (say) finance deal (hence leading to lower repayments) you may be advised to have wording in the advertisement to warn people of the potential risk if they want to change their car early and face early settlement penalties. 

Guidance on finance advertising can be found on the Lawgistics website.

Cable For My CarWe offer free next day delivery* on all EV charging cables when shipped within mainland UK

Stocking only premium EV charging cables, we ensure you experience a stress-free EV charge, over and over, confidently backed by our 2 year warranty. Our premium & reliable charging cables are compliant with EU & UK safety standards. We offer free next day delivery* on all EV charging cables when shipped within mainland UK.

Dennis ChapmanIn remembrance of Dennis Chapman 1951 -2015Read More by this author

Related Legal Updates

SHOCK & HORROR! A finance company seeks to influence an expert opinion!

Any finance house thinking of or seeking to emulate such unconscionable conduct, risks not only judicial ire and sanction but also being named and shamed.

More of the same from the FCA

Dealing with discretionary commission arrangements and concern that customers are not getting a fair deal on GAP (Guaranteed Asset Protection) insurance products.

While We Wait: Preparing for the FCA’s Review on Motor Finance Commissions

As anticipated, the FCA was not particularly helpful when questioned about the various issues of investigating complaints that were outside of the standard retention periods for documentation.

FCA Commission Review: Separating fact from fiction in the wake of scaremongering

Attend a complimentary seminar hosted by the FCA for first-hand information – Scheduled for Wednesday, 24 January 2024.

The FOS reports over 10,000 motor finance complaints: Are we really surprised?

The good news currently is the FCA is focussing its attention on the lender and not our members.

The FCA means business

The FCA are closely monitoring how firms are putting their new rules in place and will take action against those that aren’t following them.

The Motor Ombudsman (TMO) – Is it “fit for purpose”?

It seems TMO never sought to ask that basic question and, by the time the penny finally dropped, the contract with the finance company had taken place more than six years ago

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.