Clampdown on car finance commission ‘to save drivers £165m’
Car finance brokers can currently be paid higher commission when customers pay higher interest rates. The Financial Conduct Authority (FCA) says this provides an incentive for brokers to set higher interest rates, putting customers at a disadvantage.
Now the FCA wants to ban this type of commission, in a move it says would save consumers £165 million a year.
It also wants to introduce new rules to make sure different types of credit brokers, including car finance brokers, give customers more relevant information about the commission they’re paying.
The FCA will be consulting on the proposals until 15 January 2020 and says it plans to publish final rules later in 2020.
See our Car Finance guides for more info.