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Specialist lender says motor finance scandal and Budget weighing on sector

The article from the Evening Standard discusses the impact of the motor finance scandal and the recent Budget on the UK's motor finance sector. Specialist lender Close Brothers has highlighted that the sector is facing significant challenges due to the Financial Conduct Authority's (FCA) investigation into potential widespread misconduct in motor finance, particularly concerning discretionary commission arrangements that might have led to higher interest rates for consumers. This investigation has led to a freeze in dividends at Close Brothers and has caused uncertainty across the industry. Additionally, the Budget's decision to extend the windfall tax on oil and gas profits has indirectly affected the financial sector by potentially reducing investment and economic activity. The combination of these factors has created a volatile environment for motor finance companies, with potential implications for their business models, profitability, and regulatory compliance.

Read the Full London Evening Standard Article at:
[ https://www.standard.co.uk/business/business-news/specialist-lender-says-motor-finance-scandal-and-budget-weighing-on-sector-b1199353.html ]