09/02/2024
CAR FINANCE - Discretionary Commission Enquiries & Guidance
Good Afternoon All,
Some of you may be aware that Martin Lewis’s “Money Show Live” programme that aired earlier this week warned drivers that they could potentially be due a pay-out for unfair car finance commission.
The FCA undertook a Motor Finance review between 2017 – 2019 that identified widespread use of Discretionary Commission Arrangements (“DCA”) that allowed the dealer/broker a wide discretion to set and adjust interest rates.
In June 2018, the Platinum Motor Group implemented a fixed APR for used vehicle finance across the group and have continued to do so since, in the interests of treating customers fairly.
As a result of the above, companies such as ourselves can expect to receive questions/complaints for finance agreements taken out prior to the 28th January 2021 and as far back as 6th April 2007.
On the 11th January 2024, the FCA used its powers and announced changes to the handling of “DCA” complaints to allow them further time to investigate and produce an appropriate remedy. Any DCA complaints received should be acknowledged promptly in the first instance, however the final response to these complaints can be paused until after 25th September 2024. The “pause” will apply to all DCA complaints submitted to firms on or after 11th January 2024.
Due to the current media attention around the possibility of Discretionary Commission arrangements and related potential pay outs, there is concern that it may cause a negative impact on businesses commercially and could also attract questions from both customers and the media.
You should decline from entering into conversations with anyone (including customers) regarding Discretionary Commissions, whilst the FCA undertakes its’ investigations.
If a customer expresses a concern regarding Discretionary Commissions, please use the guidance as set out below. If your Franchise Finance Company is not listed below, this is because we have not yet received any specific instructions from them:
Hyundai Finance
Please direct customers to Hyundai’s dedicated website address: www.hyundaifinance.co.uk/contact
Toyota Finance
Please direct customers to either;
complaints@uk.toyota-fs.com or customers can write to them on the below address:
The Customers Relations Team,
Toyota Financial Services
Great Burgh
Burgh Heath
Epsom
KT18 5UX
VWFS (Volkswagen Financial Services)
Should customers contact our Skoda dealership direct, Platinum is required to submit their information to:
Mobilize - Renault/Dacia/Nissan
Customers calling our dealerships with enquiries should be directed to:
motorcommissionenquiries@mobilize-fs.com or they can call 0333 009 0230.
* * *
If you are directing a customer to a Finance Company, please make a note of the customer’s name and the Finance Company in question and forward this to the PFS team for logging.
Please also make customers aware of the FCA ‘s website that explains the reasons for the rules: https://www.fca.org.uk/consumers/car-finance-complaints
If a customer requires to see the information that we hold in their deal file (which would normally come in the form of a Data Subject Access Request under the GDPR), please refer any of these requests received to Jeremy Cuff to ensure we remain GDPR compliant.
If a customer is making a formal complaint, whether in writing or verbally, we must log it in the dealership Complaints Log And Manual, following the normal complaints process. Also, please ensure that this information is passed to PFS for central logging and direct the customer to the information published on the FCA’s website regarding the “pause” period https://www.fca.org.uk/consumers/car-finance-complaints. The customer must be kept informed thereafter of the progress of the measures being taken for a resolution.
Finally, please DO NOT make any comments on behalf of Platinum on this subject matter, as you may unknowingly be talking to someone from the media.
Please note that this information and guidance is subject to change/update, as all the involved parties react to what is a fast moving picture.
With best regards
Jeremy, Martyn, Paul, Michael & Jane