How much is all of this going to cost?
No one knows for sure as the FCA won’t reveal their approach until September, but don’t forget that the regulator investigated the DCA issue back in 2019 before they banned it, and they calculated the level of detriment to be £165m a year.
Is this going to be like PPI?
No. PPI was completely different and much more straightforward.
Motor finance agreements have lots of moving parts – the price of the car, trade in value of the old car, deposit etc. DCA is just one element among a number that will have comprised the final price of the agreement. It’s complex. The framework that the FCA is currently working on will need to take account of this.
Should I complain now?
No. The FCA says that once it has more information, it will decide the best way to get compensation to people who’ve lost out. The FCA also says you may want to wait for it to finish this work before you complain. They think this will be in September. Check their website for more information.
Would I know if I had a discretionary commission arrangement?
You would need to ask the dealer or lender involved in the motor finance transaction, but you don’t need to do that until the FCA sets out its resolution in September.
See the information on the FCA website
What if I don’t know how to put a complaint in?
Most people don’t know – it’s not something you do every day.
There’s really useful and straightforward information on the FCA’s website. They explain that once they have done all their work to gather information from the industry, they’ll decide the best way to get compensation to people who have lost out.
Don’t be railroaded by someone trying to convince you of a closing window of opportunity. The motive may be to get you to sign up with them so that they manage your claim. That’s marketing.
But wouldn’t a claims management company do the hard work for me?
Don’t let a CMC charge you a sizable chunk of any compensation that might come your way for doing something you could easily do yourself. The information above will guide you through it if you think you need to make a complaint.