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By Debbie McKay, Distribution Director, MotoNovo Finance

The summer’s almost upon us. I think I speak for many of us when I say just how much I’m looking forward to a well-deserved holiday, after what’s been a typically boisterous first half of the year for us motor industry professionals. 

However, before we all get too carried away, a crucial deadline is coming up. By the 31st of July, all dealers need to have conducted an annual Consumer Duty health-check, as mandated by the FCA. 

In this article, we’ll tell you what needs to be done, why you’ve got to do it, and the potential ramifications of missing the deadline.

The FCA’s own online guidance (accessible here) is the best port of call, as it breaks down the requirements in handy dropdown menus. I strongly recommend dealers to read it. In summary:

Dealers need to analyse, test, understand and subsequently evidence the sorts of outcomes that customers receive. The breadth of how dealers might conduct this will vary on factors such as the size of the dealership, the types of clients it has, as well as the complexity of the products and services offered.

Consumer Duty requires a dealer’s board (or equivalent governing body) to review and approve an annual report on outcomes received by its customers. Dealers don’t need to send the report to the FCA, however, it must be available should the FCA request to see it. Please refer to the FCA’s online guidance (link above) for a comprehensive indication of what the board report must cover.

The FCA has stated that, naturally, smaller firms will have different capabilities depending on their resources. The FCA has also confirmed that from the 27th of February 2025, firms are no longer required to have a Consumer Duty champion on their board, although dealers can retain the role if they so wish.

Dealers must be able to identify vulnerable customers, understand their personal needs and meet those needs as much as reasonably possible.

As part of this, dealers must have systems and processes in place that encourage customers to make their individual needs apparent. Staff should also be supported with appropriate training and assistance to identify vulnerable customers, whether they interact with them face-to-face, over the phone or through digital channels.

The deadline for the health-check is, as already mentioned, the 31st of July. Don’t leave it to the last minute; if you haven’t already started the work, get going now as it’s exceedingly unlikely that you’ll be given an extension.

Every dealer should want customers to wax lyrical about the service they received. To recommend the dealership to friends and family, to leave a glowing review online, and, hopefully, to return as a repeat customer in the future.

Consumer Duty has presented challenges but it’s important to remember why it was introduced in the first place. It’s not designed to penalise; it’s there to ensure that dealers are successful and delivering the best possible outcomes for those they serve.

If dealers embrace the standards set out by Consumer Duty, they’ll be better able to optimise various aspects of their service such as customer support, clear communication, efficient and transparent sales processes and much more besides.

And what about if you forget or choose not to?

The FCA is unequivocal here. Any dealership not adhering to the rules will face severe consequences. The regulator has itself stated that in some cases, they’ll take robust action, such as interventions or investigations, along with possible disciplinary sanctions.

Putting aside the fundamental necessity from a regulatory standpoint, the impacts of not following Consumer Duty outcomes are pretty obvious.

Greater risk of reputational damage, poor online reviews, reduction in repeat business and word of mouth recognition, complaints and potential legal action... The list goes on.

Consumer duty adherence isn’t an optional nice-to-have. It’s absolutely essential; the dealers who continue to embrace it and prioritise good customer outcomes are the ones who’ll be most successful.

We have a whole host of motoring insights for you, take a look here now.

Every year, dealers are required to complete a Consumer Duty health-check, as set out by the Financial Conduct Authority (FCA). This isn’t just a regulatory requirement, it’s a key opportunity to ensure your business is consistently delivering good outcomes for customers. In this article, we’ll explain what the health-check involves, why it’s essential, and the potential consequences of falling short.

Dealers: don’t forget your annual Consumer Duty health-check

The rising cost of running a car has been a recurring theme for a long time now, and for EVs, we can’t overlook that electricity prices have also been increasing. For many car buyers, this additional cost has been an unwelcome burden.

However, something strange yet welcome is emerging; lower costs. It’s the sort of good news that’s always a pleasure to share with customers.

At the end of April last year, petrol prices hit 150.6p. Today, a litre of petrol costs, on average, 135.54p. The net result is that drivers are now saving 15p a litre when they fill up, or £8.28 for a full 55-litre family car tank. Encouragingly, these prices could drop further.

Falling oil prices are driving potential reductions in pump prices: today, a barrel of oil costs around $70, compared to above $80 in mid-January. The question is whether petrol retailers will pass on the savings they see as their storage bunkers are refilled with cheaper fuel. If they do, then the RAC estimates petrol could fall by around 6p a litre.

Furthermore, the Competition and Markets Authority (CMA), assigned by the Government to oversee competition in the sector, reported that petrol retailers overcharged drivers by £900 million in 2022 and £1.6 billion in 2023. This prompted the CMA to express concerns regarding the level of competition among fuel retailers. Its upcoming quarterly report is expected to be published soon, and it will be intriguing to observe how, if at all, this affects the situation.

For electric vehicle drivers, businesses, and homeowners, there is the curious prospect of falling electricity prices, just as the new Energy Price Cap came in on April 1st, bringing with it higher prices.

Thanks to the falling wholesale prices, people can now fix their utility prices, saving themselves 13%+ compared to the new Price Cap, according to MoneySavingExpert. For EV drivers, that’s a higher fall than has been seen in petrol prices over the last year.

The price certainty and instantly lower prices will be welcome, but the fact that utility providers are happy to offer such lower prices could point to further reductions in the coming months.

The overall situation is that whether a car is powered by petrol, diesel or electricity – those ‘fuelling’ costs are falling. For dealers, there could also be the opportunity to reduce operating utility costs as well.

Fuel and electricity costs are dropping, offering welcome relief for drivers, homeowners, and businesses. Discover what’s behind the fall and how to save more.

News - May 2025

Dealers: don’t forget your annual Consumer Duty health-check

Good news - fuel and utility costs set to drop

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