With the FCA’s consumer duty deadline fast approaching on July 31st this year, Close Brothers Motor Finance has outlined some of the key things dealers could be thinking about to make sure they comply with the new regulations.
1. Reviewing your sales processes
You should consider looking at every aspect of the sales process and customer touchpoints to satisfy yourself that you’re acting at all times to demonstrate that you’re delivering good customer outcomes. Evidence of this is very important so it’s worth looking at ways of measuring, like using the information you gather as a business from customers to demonstrate value.
2. Customer communication
You might want to look at all your customer communications material, including your website, for clarity and simplicity. For instance, do you explain the nature of products, their benefits and limitations in a way that is understandable to your customers, so they’re making informed decisions?
3. Knowing how you will document and review product information
You receive product information from your finance providers. You could consider demonstrating how you deliver good customer outcomes by documenting how you regularly review how you sell your products, to make sure customers use the products as anticipated, as well as by documenting the regular training you provide to your teams on how they sell the products.
4. Customer support
When customers do need support from you, the FCA will want to know that the process for contacting you is clear and simple. It’s worth reviewing your existing customer communications and support you provide to see if they could be improved.
5. Customer vulnerability
A key part of the FCA regulations is to protect vulnerable customers of all kinds. So making sure your communications are appropriate for those with characteristics of vulnerability – like physical and mental health conditions, and also financial issues and lack of understanding – is important. Think about how you identify, record and provide the right levels of support for vulnerable customers.