The Financial Conduct Authority (FCA) has introduced new rules for dealers and lenders to follow aimed at delivering good outcomes for retail customers. These rules, called Consumer Duty, come into force in July 2023.
To help our customers deliver good outcomes for consumers, we have changed the application process for our online and showroom tools to introduce a designated Consumer Duty step within our finance journey. These changes bring significant improvements to the journey, starting from the Quote Results pages all the way through to Application Submission.
Not sure where to start?
Consumer Duty has brought about a new era of responsibility for dealers and lenders when it comes to presenting products to customers. It's no longer enough for lenders to take a hands-off approach and leave everything to the retailer. Instead, both lenders and dealers now share a joint responsibility towards the consumer.
To comply with the new regulations, lenders must demonstrate that they have full oversight of the entire customer journey, from the sale of finance and beyond. This requirement applies whether the product was sold directly by the lender or through an introducer like a dealer.
Lenders often face a challenge when it comes to controlling how dealers introduce their finance products. They rely on dealers to execute the necessary actions consistently, which requires operational oversight. Ensuring that the distributors of their products are doing their job properly is crucial.
That's where we can help
We have upgraded our customer journey with a series of enhancements designed specifically to assist lenders and dealers in meeting Consumer Duty requirements and fulfilling the four outcome areas.
We have introduced four new pages that ensure compliance with Consumer Duty by making lender information easily accessible to Dealership Users and their Customers. These pages provide the best opportunity for understanding Products and Services, their Price and Value. Additionally, they help establish a strong understanding of the support provided by the Lender, ensuring consistent compliance both online and in the showroom. Our new features are tailored to meet the requirements of Consumer Duty.
In addition to these features, we aim to reduce rejections for customers. We understand that lenders have specific rules regarding when, how, and to whom they can offer finance. When we are aware of these rules, we intercept applications on the dealer platform before they are sent to the lender. This allows the retailer to support the consumer in finding a lender that better suits their needs, avoiding rejections that could be detrimental to all parties involved.
We are committed to helping lenders and dealers navigate the challenges posed by Consumer Duty. With our upgraded customer journey and tailored features, we provide the necessary tools to ensure compliance and deliver a positive experience for both lenders and customers.