The Finance Brokers Association of Australia (FBAA) is reporting a positive response from its ‘Finance in Dealerships' roadshow which is currently driving across Australia.
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 said while some dealers act responsibly, his members have reported examples of dealers financing cars that customers can’t afford, leaving them thousands of dollars out of pocket.
“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,” Mr 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,” Mr White said.
The roadshow rolls into Melbourne on 2 September, Glenelg on 23 September and Perth on 14 October. It is free for FBAA members and only $16.50 for other full-time finance professionals.
[Related: FBAA rebrands, unveils new initiatives]
