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S&U PLC on Monday said the collection process restrictions on its motor finance subsidiary Advantage Finance Ltd have now been successfully lifted by the UK Financial Conduct Authority. The Solihull, England-based lender focused on motor finance and property bridging had been subject to restrictions brought about by an FCA review launched at the start of this year, following concerns that a large number of people may have been overcharged for their car loans through discretionary commission arrangements. The selling practice was banned in 2021, and was used by brokers to adjust the interest rates they charged customers, so that they could receive more cash in commission. Advantage Finance, along with others in the motor finance sector, had voluntarily restricted some of its collection process during an ongoing dialogue with the FCA on its forbearance procedures for borrowers in financial difficulty. S&U noted that regulatory discussions were still ongoing, and said it anticipates them moving towards a successful conclusion. Chair Anthony Coombs said: ‘I am very pleased that the close dialogue and co-operative relationship we are forming with the FCA resulted in this agreement. We have always prided ourselves on excellent customer relationships and the reforms resulting from our dialogue with the FCA should make these even stronger.’ Shares in S&U were up 2.0% at 1,800.00 pence each in London on Monday morning Copyright 2024 Alliance News Ltd. All Rights Reserved.
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