To ask Her Majesty's Government what assessment they have made of reports that some people who have used credit to buy their cars are being overcharged on interest payments; and how they are working with financial regulators to help address this issue.
18 March 2019
On 1 April 2014 the Government transferred regulatory responsibility for consumer credit from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA). The Government has given the FCA robust powers to protect consumers and supports the work undertaken by the FCA to reduce consumer harm in this sector.
In 2017 the FCA announced a review of the motor finance sector, publishing its final findings in March 2019. In their report, the FCA expressed concern about the extent to which broker discretion is allowed over interest rates in certain commission structures and said that they are considering possible responses, such as strengthening existing provisions and banning certain commission structures.
Treasury ministers and officials meet regularly with the FCA, and the government will continue to work closely with the FCA to ensure all customers are treated fairly.