ASIC is not far off auditing the motor vehicle finance sector, one industry body has claimed, and many in the sector are getting compliance "very wrong".
The FBAA is conducting compliance training for motor finance professionals, and president Peter White has told Australian BrokerNews many in the industry are failing to meet NCCP obligations.
"We found that many of the motor finance professionals in the broker part of this sector were well on top of their NCCP obligations, but with some minor tailoring required. But the car yard finance side of things had many variations - some right and some very wrong - even from some motor finance lenders," he said.
White said the FBAA had previously warned that regulations relating to motor vehicle finance could cause trouble for the industry.
"The biggest problem is the legislation was written with home loans primarily in mind. From day one of the meetings with Treasury, the FBAA highlighted the problems for the motor finance sector if this was not properly focused on and the right language used and understood," White said.
In light of this, White said the FBAA had commenced compliance seminars for motor vehicle finance "with the knowledge and well wishes of both ASIC and Treasury".
"[We have] now educated a few hundred motor finance professionals nationally, with more roadshows to come. ASIC are not far off auditing this sector, and we were directed to educate as many as we could before these audits begin," he said.