Current Issues

Current Issues

The FLA campaigns on key industry issues and influences proposals for change, helping shape government policy and regulation. This involves developing policy areas across the wide range of industry issues, lobbying decision-makers both at home and in Europe.

The FLA is working hard on behalf of motor finance providers on numerous policy issues, including: 

Raising levels of motor finance knowledge in dealerships

In 2007, the FLA set up its Specialist Automotive Finance scheme, which offers a free online test for dealers to prove their knowledge of the finance products they sell to customers.

Since then, we have introduced SAF Approved, where dealerships whose entire dealer staff has passed the test can claim the certification.

Less than a year after the launch of the SAF Approved scheme, half of the top ten dealer groups are Approved across their branch network, and more than half of the top 20 dealer groups are in the scheme, which has around 900 dealerships and 8,000 dealers signed up.

The FLA has also just launched the Dealer Directory on www.financingyourcar.org.uk which allows consumers thinking of buying a car on finance to find their nearest Approved dealership where they can be confident of getting a good deal on finance.

Fighting crime and fraud

The FLA is working with dealers and with the police to cut levels of car fraud. We took part in Car Crime Awareness Week in May with a media campaign highlighting to consumers how they can avoid becoming a victim of finance fraud by carrying out a simple check on a car’s history before they buy it.

Further media messages highlighted the need for people with cars on finance to avoid unwittingly committing finance fraud. If a car is on finance, it is owned by the finance company until the customer has made all the payments on the car. Selling it on without permission is counted as fraud.

Dealers are at the forefront of the fight against crime and foil ten attempts at fraud for every one that is committed. Rigorous checks on credit records and address data mean that dealers can spot all but the most sophisticated fraudsters at the application stage.

The FLA has also proudly sponsored the AVCIS Vehicle Fraud Unit since 2007. Our support allows them to investigate cases of finance fraud reported to them by members. Often cars are used in other crimes, so catching finance fraudsters has an impact on the incidence of other crimes too.

Voluntary terminations

Consumers are able to choose to terminate finance agreements at any point if the agreement is regulated under the Consumer Credit Act 1974 (as amended in 2006).

The VT provisions were originally introduced to protect vulnerable consumers from financial hardship, though the majority of VTs now are not made by people in financial difficulties.FLA statistics show that industry VT losses in 2009 were £52.6 million.

The FLA supports consumer protection, especially for the most vulnerable members of society. Nevertheless, we have called for Government action to mitigate the disproportionate cost that VTs represent to finance providers. We are continuing discussions with Ministers at the Department for Business, Innovation and Skills