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UK watchdog proposes car finance commission crackdown

Published 10/15/2019, 02:19 AM
Updated 10/15/2019, 02:21 AM
© Reuters.  UK watchdog proposes car finance commission crackdown

LONDON (Reuters) - Britain's markets watchdog has proposed banning how some dealers and brokers receive commission on car sales in a step it said would save consumers 165 million pounds ($208 million) annually.

The Financial Conduct Authority said some motor finance brokers receive commission linked to the interest rate that customers pay.

"The broker can set that rate and the FCA found that the widespread use of this type of commission creates an incentive for brokers to act against customers' interests," the FCA said in a statement on Tuesday.

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