Premium finance market warned of serious consequences amid latest FCA concerns

Fine yellow card booking

The premium finance market is being warned it faces serious regulatory consequences after the Financial Conduct Authority issued yet more concerns about industry practices.

In the latest FCA ‘Dear CEO’ letter, the watchdog’s insurance director, Matt Brewis, said there was a ‘range of practices’ still going on, despite customers generally being of low credit risk.

He urged firms to demonstrate to the regulator the link between quality of product and price charged.

High interest charges

Bexhill UK CEO Ravi Takhar said the problem was that brokers were still charging very high interest rates to customers.

He stressed every customer is different, but in many cases

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