Consumer Duty: A Year On...

Nearly a year on from the implementation of the Financial Conduct Authority’s new Consumer Duty principle, we are reflecting on what this has meant for us here at Autoguard Group.

As a quick refresher, the Consumer Duty that came into effect on 31 July 2023 sets higher and clearer standards of consumer protection across financial services and requires firms to put their customers’ needs first. Within the motor retail sector, this predominantly impacted companies and dealerships providing financing and regulated insurance products.

At Autoguard Group, we have fully embraced the Consumer Duty; we see its value and recognise the significant cultural and operational shift it has brought to our industry. To say it’s been easy would be a lie, but when has anything meaningful come easily?

In the run-up to the July 2023 deadline, we closely examined our current products and processes with the goal of making things clearer and smoother. Our focus was on preventing harmful outcomes for customers and assisting those with characteristics of vulnerability.

 

                 

Captured by Stevie Luxton, Group Compliance Officer, during her recent visit with the FCA.

At a glance, we have:

• Thoroughly reviewed our literature, aiming for clear and concise content, from our booklets to our website.

• Signposted customers to important information and key features surrounding their products, ensuring they are always prepared, alongside a transparency statement.

• Spread internal awareness through our employee network to ensure they are identifying and supporting our vulnerable customers.

• Structured our customer sales processes so customers can make fully informed decisions when purchasing our products.

• Introduced Bumper UK, allowing customers to spread their payments and enjoy peace of mind without an upfront cost for products.

• Automated external communications, making it easier for customers to understand claims, cancellations, and renewals.

• Collaborated with Catalyst-DBC to ensure our employees and Appointed Representatives receive dynamic and current training with ever-changing regulations.

• Closely and continuously monitored our online reviews for feedback to identify where we could improve our aftersales care and beyond.

• Established a new partnership with Voyc, a leader in AI-powered conversation intelligence and call compliance monitoring, to elevate our service quality and compliance standards. This collaboration is set to bring remarkable improvements to our operations, ensuring we continue to provide exceptional customer experiences.

• Committed to excellence by putting all our agents through SAF accreditation training for the second year running. This ensures formal recognition of our extensive motor finance knowledge, adding further value to our dealer partners. We are excited to continue our partnership with Catalyst, who are approved by the FLA as SAF equivalent.

 

At Autoguard, our ethos is to support the growth of our client’s revenue and enhance their value proposition. Alongside the FCA’s Consumer Duty cross-cutting rules, we believe in honest partnerships, longevity, and innovation. Although the work is continuous, we are concentrating on the positives that Consumer Duty brings, and we are well on our way to improving our market offering and securing the highest standards for our customers at every point in their journey.

While the deadline for the implementation of the regulator’s Consumer Duty passed in July 2023 for active products, closed books have until 31 July 2024.