Guernsey Financial Services Commission has published its Motor Trade Thematic Review 2025, its first thematic review under the Lending, Credit and Finance (LCF) regime, assessing how firms have complied with motor finance requirements since the regime came fully into effect in July 2023. The findings were broadly positive, with most firms generally treating customers fairly, but the report identifies areas where industry practices need to improve. The review covered motor finance for personal vehicle purchases, including personal loans, hire purchase, hire purchase with a balloon payment and personal contract purchase agreements, and included both credit providers and credit brokers such as motor traders and garages. It drew on a public survey, questionnaires to lenders and brokers, desk-based reviews and 15 onsite visits. Key outcomes included the removal of discretionary commission arrangements, generally appropriate arrears and forbearance practices, and provision of the loan annual percentage rate (APR), alongside weaknesses in commission disclosure processes, inconsistent compliance with LCF Rules in advertising, incomplete or insufficiently accessible customer information, and customer record quality at motor traders. The Commission will address identified issues through ongoing supervision to ensure necessary improvements are made.
Guernsey Financial Services Commission 2026-03-27
Guernsey Financial Services Commission publishes first motor finance thematic review under the Lending, Credit and Finance regime and highlights disclosure and conduct gaps
The Guernsey Financial Services Commission released its Motor Trade Thematic Review 2025, evaluating compliance with motor finance requirements under the Lending, Credit and Finance regime. While findings were generally positive, the review highlighted areas needing improvement, such as commission disclosure, advertising compliance, and customer information accessibility. The Commission plans to address these issues through continued supervision.