We recently discussed how, here at PCP Mis-Sold, we fully welcome the talk of increased regulation and scrutiny of sales for Personal Contract Purchase (PCP) finance plans. Indeed, it can only bring about benefits for drivers and truly credible dealers, as well as providing the sufficient reprimands for those who are misleading customers. That being said, we also have some concerns about long-term regulation for PCP car finance, and we will now delve into some of these in this article.
To begin with, the Financial Conduct Authority (FCA) will have to provide a system that is not flawed. It needs to look at all areas where customers are being let down and to have proper procedures put in place to prevent such eventualities in the future. It needs to be tightly managed so that shady dealers cannot take advantage of the laws in any way. And it has to earn the trust of the driving community; given the amount of research that has gone into PCP finance by the FCA, it would be disappointing if the plan of action ended up having loopholes that allowed the bad eggs to get off scot-free.
On a similar note, the investigation has been long and in-depth by the FCA, and it is far from over. Once they do finally come to a conclusion on what regulations should be put in place, though, it is vital that they understand how any new laws will become the norm for many, many years going forward. In other words, once they have put these legal practices in place, they cannot be changed or are unlikely to be changed for quite a while. This adds to the significance of getting it first-time, because if there are areas that raise eyebrows, it could be a very long time before they can be altered or improved.
And while the FCA will have its own extensive collation of notes, facts and figures on the topic, it would be wise for the Authority to consult with leading car dealers, informative organisations such as ourselves, as well as the general public, and really the driving community as a whole. If public forums, online discussions etc are held alongside the ongoing investigation into PCP-related malpractice, they are more likely to hear things from the perspective of drivers themselves and of the genuinely good-intentioned dealerships. This will ultimately be more likely to result in new legal regulations that are fair and which deliver upon the wishes of those who new laws will ultimately affect the most.
These are our main concerns, but we remain optimistic and positive about the fact that the FCA’s current work will indeed lead to adjustments being made that will change things for the better as it relates to PCP car finance sales. Find out more by signing up to our newsletter to receive updates as information or check out our other articles in the news section.