The Financial Conduct Authority (FCA) has banned a series of online and social media adverts issued by Rix Motor Company.
The FCA reported a number of posts on Rix’s Instagram account and adverts on three of its websites relating to credit broking breached FCA rules.
This was because they were representative examples of the cost of credit to the consumer were either missing from the advert or unlikely to be seen, according to the FCA.
The advert also did not make clear whether consumer were dealing with a credit broker or a lender, and did not specify the legal name of the firm as it appears on the Financial Services Register – so consumers could not easily check if Rix Motors was an authorised firm.
Rix has withdrawn the adverts and the FCA has warned them not to breach these rules again. The regulator said under the rules, financial promotions must be clear, fair and not misleading, including on social media.
Jonathan Davidson, executive director of supervision – retail and authorisations at the FCA, said: “When customers are buying a car on finance, it is really important that they are able to understand how much is going towards the finance and how much is being spent on the car.”
“They always have the choice to get the finance separately, so knowing how much it costs allows them to make informed decisions about whether they are getting the best deal. We will not hesitate to take action where we see adverts that don’t allow customers this clarity.”
The FCA said they have previously raised concerns with Rix Motors about its online adverts in 2017 and 2018 which Rix addressed.