Blog: What implications could the motor finance scandal have on insurance brokers?
As the industry shoots itself in the foot. Again. Matthew Maxwell Scott, founder and executive director of the Association of Consumer Support Organisations explores how the motor finance scandal fallout might see brokers caught in the cross-fire.
The motor finance scandal has added fuel to a raging regulatory conflagration, with the potential bill for compensation potentially running to billions more than for payment protection insurance (PPI).
As well as the Motor Insurance Taskforce, the Financial Conduct Authority is simultaneously investigating premium finance, and, on 25 October, the Court of Appeal judgment on three cases including Johnson vs Firstrand Bank called into question the entire motor finance model and led to a hasty FCA
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