HP/PCP Hidden discretionary Commissions

In approximately 40% of car finance agreements, there were undisclosed 'discretionary commission arrangements' (DCAs). These arrangements allowed brokers and car dealers to increase the interest rate to raise their commission, resulting in you unknowingly overpaying.

As of January 2021, the Financial Conduct Authority (FCA) has prohibited DCAs. This regulation prevents brokers and car dealers from inflating interest rates on car finance to increase their commission, a practice deemed unfair as consumers were not informed and often did not negotiate, assuming the rate was fixed.

People across the country have been successfully reclaiming money that was unlawfully added to their car finance agreements due to DCAs. We offer a comprehensive reclaim service to handle the process for you.

Even though there is currently a pause on the mandatory resolution of complaints by firms, it is crucial to file your complaint promptly to avoid any timing issues.

The FCA has extended the deadline for motor finance firms to address complaints related to discretionary commission arrangements received after 17 November 2023. While the FCA encourages firms to process complaints, they are not required to make any decisions until the investigation concludes, currently anticipated by 25 September 2024, though this may be extended.