FCA Commission Review: Separating fact from fiction in the wake of scaremongering

legal updates

Attend a complimentary seminar hosted by the FCA for first-hand information – Scheduled for Wednesday, 24 January 2024.

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As many already know, the Financial Conduct Authority (FCA) has announced it is investigating car finance commissions. This is specifically for agreements entered into before January 2021, and concentrating on those agreements with the now banned discretionary commission arrangement, where a dealer could essentially earn themselves a higher commission by giving the consumer a higher rate of interest.

Dealers who did not involve themselves in these discretionary commission models do not need to concern themselves. Those dealers who did operate a discretionary commission arrangement will just need to sit tight and await the outcome of the investigation. You cannot change what has been done and this investigation is exactly about what has already been done.  

Further, this investigation will be about the policies set by the lenders, and so the focus will be on those lenders.

Consumers will, no doubt, still write to dealers as they have been doing for the last few years. We have successfully dealt with hundreds of such claims for our members and continue to do so as part of their membership.

John McDougall is our in-house lead on this issue. John will be attending a free seminar hosted by the FCA to find out more, directly from the horse’s mouth. We will, of course, continue to keep you updated and look out for our members’ interests but, if you want to tune in on Wednesday, 24 January 2024, click on the link below to register:

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Nona BowkisHead of Legal Services / SolicitorRead More by this author

Related Legal Updates

More of the same from the FCA

Dealing with discretionary commission arrangements and concern that customers are not getting a fair deal on GAP (Guaranteed Asset Protection) insurance products.

While We Wait: Preparing for the FCA’s Review on Motor Finance Commissions

As anticipated, the FCA was not particularly helpful when questioned about the various issues of investigating complaints that were outside of the standard retention periods for documentation.

The FOS reports over 10,000 motor finance complaints: Are we really surprised?

The good news currently is the FCA is focussing its attention on the lender and not our members.

The FCA means business

The FCA are closely monitoring how firms are putting their new rules in place and will take action against those that aren’t following them.

The Motor Ombudsman (TMO) – Is it “fit for purpose”?

It seems TMO never sought to ask that basic question and, by the time the penny finally dropped, the contract with the finance company had taken place more than six years ago

Financial promotion on social media

The FCA’s supervisory approach to financial promotions in social media was issued in 2015.

Another victory, but the problem has still not gone away!

The FOS confirmed in the article they had not yet published any final decisions on commission-related complaints.

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