Britain’s financial watchdog is cracking down on the way car dealers and car finance brokers make commission on sales, a move that it claims will save drivers £165 million (US$210.8 million).
The Financial Conduct Authority (FCA) announced it would ban the way some car retailers and brokers received commissions linked to the interest rate customers paid on the loan they took out to buy a car. The arrangement means the higher the interest rate, the more commission is payable.
The seller can set the rate and the FCA found that “the widespread use of this type of commission creates an incentive for brokers to act against customers’ interests.”
Banning this kind of commission would remove the financial incentive for brokers to increase the interest rate paid by customers, and give lenders more control over the prices customers pay for their motor finance, the watchdog stated.
Full Content: Financial Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Google Faces DOJ Antitrust Trial, Publishers Watch Closely for Impact on Ad Market
Sep 9, 2024 by
CPI
India Moves to Challenge Big Tech Power in Digital Markets
Sep 9, 2024 by
CPI
US Tightens Grip on AI: New Reporting Rules for Developers and Cloud Providers
Sep 9, 2024 by
CPI
EU Court to Decide Apple’s €13bn Tax Battle
Sep 9, 2024 by
CPI
Google Lawyer Kevin Yingling Joins Freshfields Amid Antitrust Fight
Sep 9, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Canada & Mexico
Sep 3, 2024 by
CPI
Competitive Convergence: Mexico’s 30-Year Quest for Antitrust Parity with its Northern Neighbor
Sep 3, 2024 by
CPI
Competition and Digital Markets in North America: A Comparative Study of Antitrust Investigations in Mexico and the United States
Sep 3, 2024 by
CPI
Recent Antitrust Development in Mexico: COFECE’s Preliminary Report on Amazon and Mercado Libre
Sep 3, 2024 by
CPI
The Cost of Making COFECE Disappear
Sep 3, 2024 by
CPI