 | Home > Off Topic > Are dealers ready for commission disclosure to change? |
 
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| Supacat Member Since: 16 Oct 2012 Location: West Yorkshire Posts: 11018   
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Should be interesting to see what transpires...why has it taken so long though...
"new regulations being enforced at the end of January that will affect dealers, lenders and consumers. The new regulations, published in July 2020, set out expectations centred around two areas: Banning discretionary pricing models linked to commission Clarifying commission disclosure rules to increase transparency for customers The first one means dealers will no longer be able to adjust customer interest rates, and finance commission will have no link to the rates that customers’ pay. The second one means dealers must disclose any commission payments, including the amount, ahead of an agreement being signed by a customer in circumstances where: It has the potential to affect the dealer impartiality in recommending a particular lender or product, or It could have a material impact on the customer’s decision to take up the finance offer, or If the customer asks The FCA estimates that consumers could save £165m a year once the ban comes into effect, by protecting them from expensive rates and increasing competition in the sector." " some dealerships are concerned about the new challenges that come with the rules. Our research that polled 50 dealers found that two in five (40 per cent) of them were worried that the changes would cause confusion, while 28 per cent felt they’d bring too much transparency." https://cardealermagazine.co.uk/publish/co...nth/214317 |
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20th Jan 2021 12:25pm |
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