Which of the following are FCA rules for motor finance lending decisions?

Study for the Specialist Automotive Finance Test. Use flashcards and multiple-choice questions with detailed explanations to get exam ready!

Lenders must base motor finance decisions on a complete picture of the borrower’s ability to repay, using both what the customer provides and data from credit reference agencies. The information the borrower provides about income and outgoings shows current affordability, while credit reference agencies reveal past borrowing behavior, defaults, and overall credit history. Combining these sources helps determine creditworthiness and whether the loan is affordable, which is what the FCA expects for responsible lending. The weather forecast isn’t related to financial risk or repayment capacity, so it wouldn’t be used in decisions.