Eurodrive offers finance lifeline to motor dealers
On the 1st April, regulation of the consumer credit industry passed from the OFT to the Financial Conduct Authority. This now means that all dealers wanting to maintain a credit licence must have applied to the FCA for interim permission in order to legally continue offering motor finance to their customers.
While the FCA begins its process of monitoring compliance, dealers now need to contemplate the next stage; their application for full authorisation. So could this be the point where some dealers begin to falter? During the last 12 months, one broker has been investing in additional resource and expertise with a view to leading dealers through this challenging and uncertain period.
‘We naturally wanted to ensure that our own business model followed the consumer-centric path recommended by the FCA but we also felt a responsibility to support our dealers, some of whom are clearly struggling to come to terms with the new legislative processes.’ Said Steve Dixon, Managing Director at Eurodrive Motor Finance.
Application, Monitoring and FCA Fees… All taken care of.
‘The FCA has stated that future regulation should place the consumer at the heart of the decision-making process. It’s therefore essential that dealers do everything within their power to create systems and processes that lend themselves to treating the customer fairly and more importantly, these processes must be clearly evidenced. Eurodrive’s in-house legal team has been set up with the sole purpose of establishing and monitoring these processes on behalf of dealers. Furthermore, we will take full responsibility for the dealer’s application for full authorisation and, we’ll even cover the fees.’
Can you afford to stop selling motor finance?
It is clear that dealers and their motor finance partners must embrace the changes if they want to continue benefiting from the sale of motor finance. It is clear too that Eurodrive’s bold initiative to help guide their dealers through the complexities of FCA compliance is evidence in itself of their willingness to embrace change.
Dixon added. ‘We want to demonstrate to our dealers just how serious and committed we are to dealer development and helping them with their compliance. All we ask is that dealers reciprocate our commitment with an on-going business relationship. It’s a win/win for both parties.’
For further details on this subject and to understand how Eurodrive can help you, visit www.eurodrivefinance.co.uk/legislation/ or call 0845 602 1901