GAP insurers now under the spotlight
The motor finance world is feeling the regulatory heat right now. As previously reported and commented on, PCP plans have been heavily scrutinised, with hidden commissions being at the top of the ‘must do better’ list. While the FCA review remains in progress, we now see that 80% of Guaranteed Asset Protection firms have agreed to suspend sales at the ‘request’ of the FCA. The remaining firms have agreed to market their products only through existing distributors.
Motor finance challenges
This is not the first time car finance arrangements have been the subject of one of our updates. Less than 6 months ago we said, “three motor finance firms are facing a class action in respect of overcharging…..the excessive interest claims are eye-wateringly large and if Courts follow the PPI ‘Plevin’ precedent, many more firms will be targeted with similar claims.” Judging by the FCA’s most recent market intervention, its patience with the car finance industry has clearly run very thin.
Spotlight on directors
We are only a couple of weeks into 2024 and the year is already throwing up governance, risk and compliance challenges for individual directors and senior managers.
