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

Important changes to the FLA Lending Code

Independent used vehicle dealers will be required to become SAF-approved or equivalent by 1 January 2025.

DCA Complaints: The FCA’s Extended Timeline and Ongoing Delays

In short, five years after the original banning of discretionary commission arrangements, the FCA will provide a new approach as to how firms should deal with these matters!

Finance Company Unhappy with Court Ruling

The court found that the claim and particulars were inadequate and the finance company was told they had to submit a compliant claim/particulars.

Do I have to reply?

The lender writes to our member for assistance with paperwork, but our member decides to ignore it.

Have motor finance lenders scored an own goal?

A clear admission from two large motor finance lenders that they have no clue as to what their dealer networks are doing.

The finance industry focuses on durability, and misses the point!

There is plenty of sound legal authority that makes clear a buyer of a used vehicle must expect that faults will develop sooner or later.

SHOCK & HORROR! A finance company seeks to influence an expert opinion!

Any finance house thinking of or seeking to emulate such unconscionable conduct, risks not only judicial ire and sanction but also being named and shamed.

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