Motor finance sector set for reform due to commission payment concerns

By Neasa MacErlean

TheFCA is taking a range of steps to reform commission models for motor finance after“uncovering serious concerns about the way in which lenders are choosing toreward car retailers and other credit brokers”. All firms — whether lenders orbrokers — are now being told “to review their policies, procedures andcontrols” and the regulator is starting a ‘follow up’ with some firms after amystery shopping exercise found other issues of non-compliance.