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Financial watchdog to investigate car finance market

Financial watchdog to investigate car finance market

Britain's financial watchdog is to investigate the car finance market, with concerns about irresponsible lending.

The Financial Conduct Authority (FCA) is also raising concerns about a lack of transparency and potential conflicts of interest.

The move follows a rapid surge in consumer credit led by car dealership finance.

The FCA said it would assess who uses the products and how they are sold.It will also check whether sales staff are carrying out sufficient checks that customers can afford their monthly payments.

The plan has been set out in the annual business plan for the financial watchdog.That follows a report by the the Bank of England's financial policy committee this month, which highlights the risks form the rapid growth in consumer credit.
Source – BBC News

Read More: http://www.bbc.co.uk/news/uk-scotland-scotland-business-39642342