All articles by Fred Crawley
Fred Crawley
Close makes big hires for Irish joint venture
Close Motor Finance (CMF) has entered the Irish market via First Auto Finance (FAF), a new joint venture to act as its exclusive agent in the Republic. The venture is a subsidiary of Irish financial services business Finance Ireland (FI) and has been established with a management team including some of the leading lights of the Irish motor finance industry.
January sales data –
The UK new car market has experienced a flatter start to the year than almost all European economies, with January sales down 11.5 percent year-on-year, to 128,811 from 145,479 in January 2010.
Whiteaway Laidlaw bank heavy hitters put motor finance on back burner
Owen Woodley, former deputy CEO of Secure Trust Bank and its motor finance subsidiary Moneyway, has emerged as chief executive of Whiteaway Laidlaw, a small UK bank recently bought by RBS Equity Finance from the Manchester Building Society.
Sutton speech warns of regulation shake-up ahead
In an address to attendees of this years Finance and Leasing Association (FLA) dinner, Black Horse managing director and FLA chairman Chris Sutton warned that the recent implementation of the Consumer Credit Directive (CCD) would be only the first in a series of regulatory hurdles for the motor finance industry to tackle Sutton continued to explain that the upcoming transfer of regulatory responsibility from the Office of Fair Trading to the new Financial Conduct Authority (which will replace the FSA), would be just the beginning of the biggest shake-up in consumer credit regulation for a generation.
Claims companies may come after dealer data
Dealers and their employees may soon be targeted by claims management companies with cash offers for customer data, according to compliance firm ITC Compliance. Matt Dyer, CEO of ITC, said: “With a growing number of claims management companies chasing market share, its only a matter of time before those who have access to dealer customer records will be offered significant inducements to hand them over.” This further risk comes on top of recent comments by the head of the Financial Services Authority signalling that the “light touch” approach they have adopted for the regulation of financial products will change.
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Planning for the top
As Santander celebrates its £7bn profit success, Fred Crawley looks back at the relentless pace of expansion for its UK motor finance business. It is early February, and more than 1,000 high-level bankers are gathered at an auditorium in the Santander Financial City, just outside Madrid (pictured above). They are there to hear their chairman, the charismatic Emilio Botin, speak following the announcement of Grupo Santanders results for 2010.
Taking the law into their own hands
The Legal Services Act is set to open up collections market.Charles Wheeldon and Fred Crawley report. From October, the Legal Services Act 2007 (LSA) will allow non-solicitors to own, manage and finance law firms With banks, insurance companies and retailers allowed to buy law firms, the reform has been dubbed the Tesco Law.
Consumer confidence falls off cliff
Consumer confidence levels took a spectacular fall between December and January, driven in particular by a record plunge in the publics appetite for major purchases, including cars. But historical data shows the motor finance industry has weathered similar collapses in confidence over the last three years, and there may even be a case for saying the current situation could increase finance penetration of motor retail as customers look for new ways to make purchases possible.
Editor’s letter: Industry still under the weather
Latest forecasts from the Bank of England seem to be giving some fairly stark messages to the motor finance industry. First of all, inflation rates are double their target at 4 percent, and look likely to remain there for the rest of the year at least, before sinking gradually down to 2 percent sometime thereafter. This will admittedly increase the price of cars, which in turn will mean larger volumes of finance per deal deals and more profit made over the course of agreements.
MIB scheme to ensure asset satety for lenders
Motor Finance providers have been offered a free service to prepare them for Continuous Insurance Enforcement regulations coming into play this spring, as a result of a new tie-up between the Finance and Leasing Association (FLA) and the Motor Insurers Bureau (MIB). Paul Harrison, the FLAs Head of Motor Finance, said: The partnership between motor lenders and MIB is well timed because the new Continuous Insurance Enforcement regulations will require all vehicles to have insurance, even if they are not being used on the road.By working with the Bureau, lenders can protect their assets at the same time as keeping our roads safer.