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1 month ago | 
assetfinanceconnect.com | Pat Sweet
The Financial Ombudsman Service (FOS) reported a 49% hike in complaints in the second half of 2024, citing a marked rise in motor finance commission cases and disputes about credit affordability, which were fuelled by a doubling in the proportion of claims brought by claims management companies (CMCs), as well as concerns around banking fraud.
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1 month ago | 
assetfinanceconnect.com | Pat Sweet
More than half of lenders in the motor finance market are only “partially” prepared for the outcome of the current Supreme Court appeal while a quarter have yet to determine their approach and just a handful believe they are ready, according to research from an Asset Finance Connect (AFC) workshop, in association with Shoosmiths, which focused on the next steps to tackle the legal challenges which have overshadowed operations for months.
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1 month ago | 
assetfinanceconnect.com | Pat Sweet
Roma Pearson, formerly the Financial Conduct Authority’s (FCA’s) Director of Consumer Finance, has quit the regulator to join specialist compliance consultancy Square 4, which is an associate member of the Finance & Leasing Association (FLA) and has advised several motor finance clients including Blue Motor Finance.
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1 month ago | 
assetfinanceconnect.com | Pat Sweet
Government plans to stimulate economic growth are at risk because of failures to address a crisis in SME lending, according to research from Allica, which has identified a £90 billion shortfall in bank lending to this market segment over the past 25 years. The fintech says a substantial credit gap of up to £65bn has developed since the financial crisis, and is calling for a full reboot of the UK’s SME lending market.
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1 month ago | 
assetfinanceconnect.com | Pat Sweet
Santander is looking to hive off its UK car finance arm as the Spain-owned bank starts to ready its UK business for sale, according to recent press reports. The move follows a £295 million provision in Santander UK’s most recent accounts to cover potential compensation costs arising from the current legal cases concerning motor finance mis-selling cases.
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1 month ago | 
assetfinanceconnect.com | Pat Sweet
Captive finance company Ford Credit Europe (FCE) has become the latest motor finance lender to announce it has set aside funds to cover any compensation due for mis-sold car finance arrangements, noting a provision of £61 million in its recently published 2024 accounts. The move comes in the wake of last year’s Court of Appeal decision on commission disclosure which was challenged in the Supreme Court earlier this month.
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1 month ago | 
accountancydaily.co | Pat Sweet
A director of a London based construction company, who was previously disqualified, has been banned for 14 years after continuing to run the company, along with his mother who has been given an eight-year banRobert Murphy was disqualified from acting as a director for a period of four years from September 2011, but an investigation by the Insolvency Service discovered that despite resigning as a director of Silverview Developments Ltd, his role within the company did not change.
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2 months ago | 
assetfinanceconnect.com | Pat Sweet
July is the earliest that the motor finance sector will know the outcome of the crucial Supreme Court hearing on the question of commission disclosure and fiduciary duty, which was held over three days at the start of April.
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2 months ago | 
assetfinanceconnect.com | Pat Sweet
The Financial Conduct Authority (FCA) has hit out at last October’s Court of Appeal ruling on motor finance commission, saying its “ sweeping approach” in treating motor dealer brokers as owing fiduciary duties to consumers “goes too far”, in its submission to the Supreme Court ahead of this week’s appeal on the landmark judgment.
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2 months ago | 
assetfinanceconnect.com | Pat Sweet
The Treasury is to examine the role of the Financial Ombudsman Service (FOS) amid concerns about its remit in areas such as motor finance claims, as part of plans for a bonfire of regulations, while the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are among a group of regulators summoned to meet Rachel Reeves on March 17, as the Chancellor announces an action plan “to deliver on the pledge to cut the administrative cost of regulation on business by a quarter”.
