The Financial Conduct Authority has announced a crackdown on the car financing industry which it claims will save drivers £165m. It says that some dealers make commission on the loan’s interest rate, which they set, something which “creates an incentive for brokers to act against customers’ interests”. Some brokers...
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The Financial Conduct Authority could ban insurers from moving policyholders on to more expensive policies when they renew deals, with a probe finding that around 6m customers were being overcharged by £1.2bn a year. The FCA found that customers who were initially offered “new business” discounts were regularly subject...
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MPs have urged ministers to force banks to commit to keeping at least one local branch open in towns across the UK. In a new report, Westminster’s Scottish Affairs Committee recommends introducing legislation if banks refuse to provide such a guarantee. It follows an inquiry by the committee into...
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Barclays’ head of consumer banking and payments has warned that compliance concerns around challenger banks risk “creating a bad name for the banking industry”. Ashok Vaswani said that concerns around the ability of start-ups to automatically monitor transactions are “dangerous” for the sector. “At the end of the day,...
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Figures from the Office for National Statistics show that public sector net borrowing rose sharply in June, hitting £7.2bn. This marks the highest June borrowing figure since 2015 and compares to the £3.3bn recorded in June 2018. While the tax and National Insurance take was up £800m on a...
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Chancellor Philip Hammond has called for “radical cultural change” to end the scourge of late payments – which puts 50,000 small firms out of business every year. The Chancellor said companies’ unfair behaviour risks hampering the economy by restricting the growth of smaller firms, as he held urgent talks...
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A new report from Purbeck Insurance Services has found that thousands of UK companies plan to use finance to improve their cash flow in the future, with 28% of the SME executives interviewed turning to external funders, including to cope with late payments. Other reasons for sourcing finance included...
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The Financial Conduct Authority (FCA) has confirmed its annual funding requirement for 2019/2020, revealing that it will need £558.5m from all regulated firms – up from £543m last year. Peer-to-peer lenders are among those financial services firms preparing for a bill hike this month. The regulator has proposed a...
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The Financial Services Compensation Scheme has announced that more than 4,500 companies will not pay its levy in 2019/20, with these each instead receiving a rebate, with the average payout at £139. Analysis shows that 46,000 companies across the financial services industry will pay the levy in 2019/20, with...
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MoneyWeek’s David Prosser says that much of the anger over the Financial Conduct Authority’s investigation into the treatment of small businesses by Royal Bank of Scotland is misplaced. He points out that small business lending is still not within the FCA’s remit. For victims of the RBS affair, the...
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