More than 9 out of 10 (91%) dealers surveyed are aware of the upcoming new Consumer Duty changes – an increase of 28% compared to the previous quarter. The exclusive data from Close Brothers Motor Finance comes ahead of the 31 July 2023 deadline to implement the changes.
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 practice 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:
1. Products and services
2. Price and value
3. Consumer understanding
4. 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.
“Close Brothers Motor Finance has been supporting dealers since March with information and assistance including educational, face-to-face masterclasses on the Duty and providing access to an online hub full of helpful information. This support will help dealers to implement any changes required to comply with the new rules. Dealers can also find out more directly via the FCA website.”
