As you may already be aware, the Consumer Duty came into force on 31 July 2023. The Duty sets a higher standard of consumer protection within the financial services sector.
The Duty means consumers will get support as and when they need it, receive communications they will understand, and be informed enough to purchase products and services to meet their needs and offer fair value.
One of the leading motor finance lenders has conducted research with their customers. Now, while I always suggest taking this type of research “with a pinch of salt”, it interestingly showed that over a quarter of customers surveyed stated the most important thing when taking out car finance was being able to afford the product.
The lender stated: “With the cost-of-living crisis squeezing people’s finances, the introduction of new Consumer Duty regulations will mean that good customer outcomes will need to be an integral part of dealers’ processes and mindsets. The FCA is taking steps to ensure businesses are prioritising the needs of customers and placing a level of responsibility on dealers to help consumers then purchase products that best suit their needs.”
The Financial Conduct Authority (FCA) has been very clear in its communications. And the following statement is an example of this: “We’re closely monitoring how firms are putting our new rules in place and will take action against those that aren’t following them.”
At Lawgistics, we endeavour to support all of our members. However, as you may have seen in communications you have received from your lenders, Consumer Duty was a major change made by the FCA. Lawgistics is not an automotive compliance firm, and therefore, does not have specific Consumer Duty solutions for our members.
We will always try to point you in the right direction and have listed below five companies that may be able to assist with your Consumer Duty requirements. The companies are not listed in any particular order, and this is not a paid advertisement for them as there may be other alternatives available.
https://automotive-compliance.co.uk
https://www.catalyst-dbc.co.uk
https://www.itccompliance.co.uk
Need help with keeping on track with FCA Regulation and Compliance? Partner with Automotive Compliance
https://thecomplianceguys.co.uk
Consumer Duty is not to be ignored. If you are unsure, we suggest that you contact your financial product/service manufacturer to understand how you can meet your obligations under the Consumer Duty.
