The final notices issued by the Financial Conduct Authority to dealers this month could be the “first of many”, according to technology firm iVendi.
James Tew, CEO at the online motor finance specialist, said the reason given by the FCA – “failing to be open and co-operative in the consumer credit sector” – was an indication that a new era of motor finance regulation was here.
Earlier this year Ian Beardmore, managing director of Consumer Credit Compliance, said that dealers faced scrutiny from the FCA as it moved from an authorization to a supervisory role after 31 March.
Tew said the dealers had been in a “holding pattern” since the new FCA consumer credit regime came into effect.
“with this first wave of motor dealer notices, we are very much seeing the regulator get down to business.
“Even at this stage, we are coming across dealers pretty regularly who have not really got their head around all the implications of providing customers with meaningful choice, accurate information and consistency across their organisation.
The FCA told Motor Trader that the final notices issued were not a crackdown on the Motor Trade and that the notices had been uploaded on the website in a short time as a matter of process.
Last week legal firm Lawgistics said two of the companies issued with final notices had made applications to be struck off as a limited company.