What is this?
Discretionary commission arrangements (DCAs) existed between car finance providers and brokers whereby discretionary commissions were paid to the broker without the knowledge of the customer. In some cases, this has led to the customer being charged a higher rate of interest. In 2021, the Financial Conduct Authority (FCA) banned DCAs as they provided brokers with an incentive to raise interest rates for customers. Prior to the ban, there was a widespread rejection of consumer complaints by car finance providers.
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Our expert commercial litigation department acts on behalf of businesses, from start-ups to developers and established enterprises, right across the North West. We are proud to have developed long-lasting and trusted relationships with the clients we advise, helping them achieve results that work for their business.
What has the FCA have implemented?
As there is a significant dispute between some car finance providers and consumers, and in anticipation of a significant increase in customer complaints to car finance providers, the FCA has used its power to review historical motor finance commission arrangements and sales across several car finance providers.
Whilst the FCA conducts its review, a pause has been put in place which means that car finance providers do not have to respond to new complaints until after 25 September 2024, at the earliest.
However, you can still submit a claim for compensation to your car finance provider in the meantime, and we would strongly urge you to do so to get ahead of the curve.
“I am always extremely impressed by the level of commitment all staff members exert, in particular when I have needed to refer a mediation or legal aid matter concerning urgent action. MSB members promptly undertake the necessary action and provide an excellent service.”
How we can help
If you used finance (this includes hire purchase agreements, such as Personal Contract Purchases) to buy a vehicle (for example a car, van, campervan, or motorbike) before 28 January 2021, then you could be entitled to £1000s in compensation.
Claiming compensation can be lengthy, stressful, and time-consuming process. Remove the hassle and instruct one of our specialist lawyers to pursue a claim on your behalf. In most cases, we will be able to act for you on a no win no fee basis.
Get in touch using the contact form, below.
Why MSB?
Our commercial litigation team provides sector-leading services and advice, guiding our clients through the best solutions for them. We develop life-long relationships built on mutual trust, respect and results.
We pride ourselves on our partner-led approach, which ensures a quality, proactive and cost-effective service to our wide-ranging base of commercial and business clients.
Given our well-established, experienced and growing commercial team, you can be confident that we offer all the resource and expert know-how required to reach the right resolution for you and your business.
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