June 6, 2022

New Financial Leasing Authority Protocol issued

 


New Financial Leasing Authority protocol published that will remove disadvantage

Financial Leasing Authority, with National Franchised Dealers Association, released new protocol to provide bespoke support to armed forces personnel deploying overseas.

With effect from 1 June 2022, serving personnel will benefit from a new protocol that ensures motor financing works better for them when deploying overseas

Chief of Defence People, Lt Gen James Swift said:

“This new protocol is yet another step in ensuring our Armed Forces personnel are treated as fairly as other members of the public across the country, through the Armed Forces Covenant. Thank you to the Finance & Leasing Association and National Franchised Dealers Association for working together with Defence to ensure motor finance works better for our serving communities.”

This new policy is one of the many benefits the Armed Forces community can take advantage of thanks to the Armed Forces Covenant. Now in its eleventh year, the Covenant is a pledge from the nation that those who serve or have served in the Armed Forces, and their families, are treated fairly.

As part of a long-term strategy of supporting the Armed Forces Community, and as a full-time member of the MOD Financial Services Steering Group, the Financial Leasing Association (FLA) has worked with MOD to aim to remove disadvantage for serving personnel deploying overseas.

This policy will ensure that, from 1 June 2022, serving personnel deployed overseas should no longer have to face the distress of returning a lease-hire vehicle unexpectedly or repaying the loan in full prior to deployment.

While motor finance providers have endeavoured to find a solution that is acceptable to serving personnel for nearly 2 years now, the FLA’s issuing of this protocol formalises this bespoke arrangement for the armed forces community across its full membership.

It is essential that any personnel taking out lease-hire must ensure they make clear at the outset of the process they are a member of the Armed Forces, to ensure this protocol applies. This protocol will only be followed by providers that are members of the FLA.

You can find full details of the protocol, and confirmation of which members have signed it, on the FLA website.