In April 2014, the Financial Conduct Authority (FCA) took control of the regulation of consumer credit in the UK. This resulted in around 50,000 businesses offering consumer credit in the UK finding themselves under the authority of the FCA’s consumer protection rules and regulations.
Creditplus, one of the UK’s leading ethical car finance providers, puts the well-being of their customers at the forefront of their business activities. One of Creditplus’s core values is the protection of their customers. Their Customer Advisor team are always on hand to assist people on their financial journey, dedicating their time to educating customers on where they stand and the appropriate action to take. Furthermore, Creditplus will not provide loans to an individual who cannot afford to pay them back, cementing their firm ethical practice.
In order to ensure all customers are treated fairly and provided with a first-class service, Creditplus are fully regulated by the FCA. By abiding to their strict guidelines, Creditplus customers are guaranteed a high standard of service throughout their car finance buying journey.
During the two and a half years since the FCA became the primary regulator of consumer credit, a landmark achievement would be the authorisation of more than 30,000 consumer credit firms. The FCA has also managed to oversee the actions of payday loan and debt management sectors. As a result of the FCA’s presence in the industry, millions of pounds of redress to customers has been paid in the last two and a half years. Furthermore, the closure of a substantial amount of businesses has occurred due to not complying with the requirements of the FCA.
The reason why many businesses closed or left the sector could be down to their business models and strategies. If the company focused solely on turning over a large amount of profit each year, and neglecting the importance of customer service, they did not fit the FCA’s expectations.
However, the motor sector appears to have continued with its regular functions, without being majorly affected by the influence of the FCA. This is primarily due to credit broking being viewed as significantly lower risk than payday lending and debt management.
What’s more, it has been recognised that motor dealers have an understanding of the importance of providing their customers with a high standard of service if they wish to grow within the market. The vast majority of businesses in the retail motor sector provide consumers with good value for money and the best products for their customers.
According to the FCA, the motor sector can still be at risk in their day to day business activity. This is due to the fact that businesses may not understand the difference between customer satisfaction and customer understanding. For example, a customer could be fully satisfied with the product they are sold, but without any understanding of what they have bought. It is key that customers have an understanding of the product they wish to purchase, not just for their own protection, but also for the companies and to secure future business.
It is key that businesses embrace the regulations and requirements set by the FCA in order to evolve and improve the way in which they work. Therefore, Creditplus strives to follow the FCA’s regulations in order to continuously develop as a company and improve their quality service.
If you require further assistance, our team of Customer Advisors are here to help. We're open six days a week - you can view our opening hours here - and we're more than happy to answer your questions.