Car finance complaints: discretionary commission arrangements
On 11.01.2024, the Financial Conduct Authority (FCA) released information about car finance complaints, specifically where lenders and brokers (or dealers) had discretionary commission arrangements (DCA).
A DCA is where a finance lender offers a (vehicle) dealer a base interest rate for a customer, and the dealer can increase the amount of commission they earn by increasing how much interest the customer pays. This was banned by the regulator in January 2021.
To find out more about this publication and how it may affect consumers, visit the 'Car finance complaints' page on the FCA's website.