The National Association of Commercial Finance Brokers (NACFB) has penned an open letter to its members calling for greater reform in the motor finance market, specifically around the control motor dealers have over consumer choice.

The organisation states that the FCA’s 2019 consultation fails to address the control motor dealers have over consumer choice and will inevitably remove their competition, adversely affecting the customer.

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In the open letter to members, the NACFB said it had held a constructive meeting with the head of supervision from the FCA motor finance division last week. “During the meeting we vehemently voiced our concerns with the regulator around the potential impact of their plans to remove discretionary commissions without addressing the blatant competition issues borne out of the control that dealers have over their customer’s choice.

“Whilst the association has been encouraged that the FCA acknowledged that dealers were refusing to invoice lenders where they were not receiving commission, we have been disappointed to witness the apparent inertia of the regulator due to insufficient numbers of customer complaints on the matter.”

As a result, the NAFCB has called on all asset finance brokers to share examples of dealers refusing to invoice where the customer has rejected the dealer’s finance offer.

“At this watershed moment, I implore you all to step forward and share with us as much information on this matter as you can. It cannot be understated that only by working together can we hope to show the regulator that the problem here lies not with commissions, but with the control that dealers have over consumer choice.”

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Launched in 1992, the NAFCB is the UK’s largest independent trade body for commercial finance brokers – made up of more than 2,000 commercial finance members.