FLA comment on the FCA’s announcement to ban discretionary commissions in the motor finance market from January 2021

Commenting on the FCA’s announcement that it will introduce a ban on discretionary commission models on 28 January 2021, Adrian Dally, Head of Motor Finance at the FLA said:

 “This is a welcome announcement from the FCA as it provides clarity for the industry.  We are also pleased that the regulator accepted our point about the need to monitor the consumer hire market as the ban on discretionary commissions does not extend to personal contract hire agreements.”

 Notes to editors

1. In 2019, FLA members provided £140.3 billion of new finance to UK businesses and households. £104.7 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2019. £35.7 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2019.
2. For media enquiries, please contact the FLA press office on 020 7420 9656.