The FBAA has received a positive response from its ‘Finance in Dealerships’ roadshow currently running across Australia, which is aimed at educating car dealers on their responsibilities under the NCCP.
The association says the roadshow is aimed at motor dealers and covers all areas of finance transactions, including a dealer’s requirements under responsible lending, licensing requirements and new technologies to improve business efficiency.
FBAA chief executive officer Peter White
says that while some dealers act responsibly, the roadshow was in response to some FBAA members reporting examples of dealers financing cars that customers can’t afford.
“Motor dealers may not be providing customers with a credit guide, not disclosing commissions and we have seen some clear examples of them not meeting responsible lending conduct obligations,” White said.
“They are taking advantage of a grey area of the act and often they have unqualified people writing the loans.”
The FBAA’s ‘myFNI team’ has already taken its dealer education roadshow to Queensland and New South Wales, and has upcoming events scheduled for other states.
“Many dealerships misunderstand the lending requirements under the National Consumer Credit Protection Act and believe they are exempt from all of the Act’s requirements, which they are not,” White said.
The roadshow will arrive in Melbourne on September 2, Glenelg on September 23 and Perth on October 14. It is free for FBAA members and only $16.50 for other full time finance professionals.