The latest Forecourt Foresight research examined dealers’ awareness of the upcoming Financial Conduct Authority’s (FCA) Consumer Duty legislation changes, which are coming into play this month. We asked the same question in the previous set of research in Q3 to measure how awareness has changed as the deadline approaches.
The changes are being introduced to improve best practices across the industry, where a new Consumer Principle aims to lead to better outcomes for consumers. To deliver these outcomes, the rules are based on four key areas:
- Products and services
- Price and value
- Consumer understanding
- Consumer support
Businesses will need to demonstrate that they’re continuing to act to deliver good outcomes for customers by the deadline of 31st July 2023 and beyond. The data is showing a positive trend as more and more dealers become aware of Consumer Duty and develop a strong understanding ahead of the implementation.
Lisa Watson, director of sales at Close Brothers Motor Finance, said: “Over the coming weeks it’s vital that dealers and decision-makers in the automotive industry develop an understanding of the new Consumer Duty changes, and the role they need to play as distributors.
“It’s heartening to see that nearly all dealers are now aware of consumer duty and understanding is growing fast.
“The new rules are there to ultimately offer more protection and better outcomes for consumers but will also encourage best practice from dealers.
“Failure to comply with the new rules could result in significant reputational damage, and potentially financial implications in the future if FCA guidelines are not adhered to. It would also mean that customers are not getting the required levels of service from their dealer.”