Many dealers would be likely to welcome a different regulator if the Conservatives win the next General Election and carry out their commitment to change, said RMIF director Sue Robinson.
Shadow chancellor George Osborne has said the Financial Services Authority (FSA) should be scrapped and the Bank of England given full responsibility for supervising financial institutions. “We will give the Bank the tools to do the job,” he said.
Robinson said: “FSA regulations for motor dealers have been cumbersome at best and in many cases have lacked clarity and relevant consultation.
“RMIF members have often commented on this when discussing finance issues with us. As a result many would be likely to welcome a different regulator.”
If such a change were to be introduced, the RMIF would want to ensure that it was fully consulted on any issues relating to the retail motor sector, she said.
Many dealers have protested about the way the FSA has performed its role of protecting consumers by regulating retailers who provide financial and insurance products to car owners.
The Finance and Leasing Association declined to comment on the proposal. So did Black Horse, the UK’s dominant motor retail lender following its absorption of Bank of Scotland Dealer Finance. Lloyds TSB Asset Finance, which owns Black Horse, was also saying nothing.
Chancellor Alistair Darling wants a Council for Financial Stability to co-ordinate the Treasury, Bank of England the FSA in regulating financial institutions. The Conservatives say the existing system did not prevent financiers taking undue risks and ignoring problems which led to the Government spending billions supporting some of the UK’s biggest banks.
HPI will shake up POS loans
HPI will “revolutionise” showroom loans with Finance Gateway, giving dealers free direct access to leading providers. Santander, Fortis and Southern Finance have joined the network.
Daniel Burgess, HPI automotive director, said: “We will deliver quality, volume business while enabling dealers to maximise profits from point-of-sale finance deals.
“Finance Gateway will help them secure more cars sales and avoid customer disappointment. It also offers consumers a competitive yet responsible credit proposition.”
Burgess said the product was offered with no commission claw-backs for dealers, and an instant online proposal from the finance company best suited to a customer’s personal credit rating and the profile of the car.