Motor lender Advantage Finance wants ‘more realistic’ regulation

Advantage Finance, a motor finance lender under scrutiny by the Financial Conduct Authority (FCA), has voiced concerns over what it describes as Britain’s “restrictive and constantly changing regulatory regime.” The lender, owned by S&U, has faced operational restrictions imposed by the FCA this year, particularly regarding its treatment of customers experiencing financial difficulties. The FCA's measures have compelled Advantage Finance to implement additional forbearance strategies for borrowers in distress. Furthermore, the lender is now prohibited from initiating “proactive repossession action” against customers without prior approval from the regulator, as noted in the FCA’s official register. These limitations have significantly impacted the lender's operations and overall business performance. In response to these challenges, S&U announced on Monday that it is engaged in “constructive but vigorous negotiations” with the FCA to lift the imposed controls. The company is actively seeking a resolution that would allow it to operate more freely while still adhering to regulatory standards. Additionally, Advantage Finance has urged the government to consider implementing a “more pragmatic” approach to regulation. The lender believes that a more flexible regulatory framework could better support both financial institutions and consumers, particularly in times of economic uncertainty. As negotiations continue, the outcome will be closely watched by industry stakeholders and regulators alike.