October 15, 2019 / 6:10 AM / a month ago

UK watchdog proposes car finance commission crackdown

LONDON, Oct 14 (Reuters) - Britain’s markets watchdog has proposed banning how some dealers and brokers receive commission on car sales in a step it said would save consumers 165 million pounds annually.

The Financial Conduct Authority said some motor finance brokers receive commission linked to the interest rate that customers pay.

“The broker can set that rate and the FCA found that the widespread use of this type of commission creates an incentive for brokers to act against customers’ interests,” the FCA said in a statement on Tuesday.

Reporting by Huw Jones, editing by Sinead Cruise

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