MOTOR finance has come under scrutiny by the Financial Conduct Authority which said it has found areas of concern, including increasing arrears and default rates for customers with the lowest credit scores.

The FCA’s annual report due to be published later this year also finds some poor practices in the way firms provide information to customers.

The report also finds that that some commission structures could lead to higher motor finance costs if not properly managed by lenders and brokers.

It added: “We are therefore focusing on these areas for the remainder of the review, which is due to be published by the end of 2018.”