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ISCOVER
Staff Reporter
The Finance Brokers Association of Australia (FBAA) will host a series of credit compliance and NCCP awareness programs throughout 2013 for finance and insurance managers in dealerships.
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FBAA president Peter White said conducting consumer credit within motor vehicle dealerships has changed over the past two and a half years as all consumer finance professionals now must comply with new rules prescribed by NCCP legislation.
“Albeit there are certain exemptions within the Act as it relates to Point of Sale (eg. motor vehicle dealerships),” Mr White said, “this does not mean that there is a complete exemption from the Act for dealerships and there remains obligations, disclosures and compliance measures, together with responsible lending conduct obligations, that must be adhered to.”
Research conducted by the FBAA found there are around 9,000 motor finance professionals in Australia, with many working within motor dealerships while conducting broking activities.
“It is critical that everyone within the motor finance industry, and especially motor vehicle dealerships, are fully aware of their obligations and have sought their own independent advice outside what their wholesale floor plan provider has given them,” he said.
Mr White has been a part of the NCCP's industry consulting committee to federal treasury from its inception and has close industry ties to the Australian Securities and Investments Commission (ASIC).
ASIC recently cautioned the industry that the time for consultation on breaches of the NCCP is over and that all breaches will be taken seriously and acted upon.
The mortgage sector has already seen ASIC take decisive action against persons who have breached the Act, and dealerships and motor finance professionals are not off the radar.
