Question to the HM Treasury:

To ask His Majesty's Government, further to the investigation launched by the Financial Conduct Authority on 11 January into the motor finance market, what long-term plans they have to ensure customers are charged fair and transparent prices in that market.

The government believes it is vital that consumers have access to a healthy, competitive and sustainable motor finance market to enable them to spread the cost of a vehicle in a way that is manageable and affordable.

As the UK’s independent regulator, the Financial Conduct Authority (FCA) is responsible for regulating the motor finance market. It has robust powers to protect consumers in this market, and took action to ban discretionary commission models in 2021. The FCA has also confirmed that it will be taking steps to investigate historic practice in the motor finance sector, with a view to determining whether widespread misconduct has occurred and, if necessary, how redress can be delivered in an orderly and consistent way.

Treasury ministers and officials meet regularly with the FCA, and the government will continue to work closely with the FCA to ensure all customers are treated fairly.