Are you up to speed with new regulations for businesses that sell products on finance?

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Compulsory new regulations which govern all businesses selling finance came into force on April 1st, when the Financial Conduct Authority (FCA) took over responsibility for regulating consumer finance from the Office of Fair Trading (OFT).   The UK has around 50,000 businesses which offer some form of consumer credit, which are now subject to the FCA’s consumer protection rules and Principles for Business.    Fears that new regulations attached to the Consumer Credit Act would suppress the sales of new bikes seem unfounded among MCI members.  A report by Dave Macey, Chair of the MCI’s Service Providers Special Member Group, found that both large and smaller dealerships were up to speed on the changes:   “Most people we have spoken to seem to have obtained the required license categories for their particularly business.  We had been concerned that if dealerships had not prepared properly for the changes in April – we would have seen a reduction in sales.  We are optimistic that consumer protection rules will actually boost sales, as they offer greater transparency surrounding ‘point of sale’ finance. There are some great deals around at the moment and it is important that these are matched to the needs of the customers, which these new rules will help to do.”   All dealerships should make themselves aware of what the new rules entail and to check that they are compliant via the FCA website:  www.fca.org.uk.   Note: The MCI’s Service Providers Special Member Group meets quarterly, with the next meeting in September.  To enquire about attendance email Sandra Cole, Membership Managers.cole@mcia.co.uk