Until late last year, it was relatively easy to start up as a leasing company. All you needed was a consumer credit licence, and you could easily set up a website promoting leasing deals to both businesses and individuals.
Previously, manufacturers and finance companies have worked together to clamp down on bad practices and stamp out unofficial agents, but without proper rules and regulations in place, it was always going to be a tough task.
When the Financial Conduct Authority took over from the now defunct Credit Broker Licences, previously governed by the Office of Fair Trading, on April 1st 2014, all businesses offering finance or leasing options had to apply to the FCA for an interim licence to continue trading.
However, the FCA are now so diligent about reviewing and approving businesses fit to sell consumer finance and lease products, it is estimated that 15% of leasing brokers haven’t even applied.
By introducing stricter criteria for operation, there is an in-depth review process in place before a company can be approved to lease cars.
The FCA also requires leasing brokers to have rigid internal procedures in place to ensure that data collection and protections systems are kept up-to-date.
Since the new regulations were brought in, many firms were deemed to be miss-selling services, mostly by upselling unnecessary options and less cost-effective deals.
Such practices are now strictly monitored and any leasing company found to be in violation of these regulations will be subject to action from the FCA.
CVSL is authorised and regulated by the Financial Conduct Authority. We pride ourselves on delivering good quality service and achieving high levels of customer satisfaction.