Brokers get information pack

An information pack and toolkit has been created for car finance brokers aimed at helping them adhere to official guidelines on issues such as disclosing details about their commission.

Guidance for Credit Brokers and Intermediaries, published by the Office of Fair Trading, says that those dealing in finance products should, under certain circumstances, detail any commission they earn.

A complementary information pack, put together by the National Franchised Dealers Association (NFDA), outlines how dealers should comply with the guidance and disclose commission to their customers in specific instances.

NFDA director Sue Robinson said that failure to comply with the OFT guidance could have implications for dealers with regard to their consumer credit licence.

The information pack, available only to members of the Retail Motor Industry Federation, is designed for those in the industry and has two formats: one for internet use and one in written form.

It outlines the process for figuring out any conflicts of interest among brokers when they sell their products, as well answering typical questions on disclosure of commission for motor retailers.

Elsewhere, as motorists continue to be hit by rising fuel costs, politicians are debating whether to put off another forthcoming rise in fuel tax, of 3p a litre, from January to April.

Tim Naylor, who edits the Used Car Market Report for British Car Auctions, said: "If this postponement goes ahead, this will come as a huge relief to many motorists who are struggling with fuel prices as demonstrated by our research: 70% of car owners admitted they had taken steps to cut their car operating costs. Many are changing the way they drive to maximise their fuel efficiency."

Data compiled by British Car Auctions shows that people are adopting various methods to try to reduce the amount of money they spend on petrol or diesel.

Many are being forced to change the way they drive, with one in six motorists (17%) now driving slower in order to burn less fuel and about the same proportion (16%) trying to avoid heavy braking.

Others are simply swapping their vehicles for more fuel-efficient types.

According to a survey by researchers BMRB, for the Used Car Market Report, around half of motorists (53%) said that increasingly expensive fuel will ultimately force them into either changing their motoring habits or buying a more economical car or van.

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