Vehicle Finance Discretionary Commission Complaints
The Financial Conduct Authority (FCA) announced on 11 January 2024 that a review will be conducted in the vehicle finance market regarding Discretionary Commissions.
Following a segment aired on ITV on 06 February 2024 about discretionary commission arrangements, we want to inform our customers that Anglo Scottish Asset Finance acts as a broker, not a lender. If you believe you have been impacted by this issue, please contact your car finance lender, whom you pay your direct debit.
What is a discretionary commission?
- Prior to 28th January 2021, some lenders permitted brokers and car dealers to adjust the interest rates offered for car finance.
- Car deals involve various factors, with the APR being just one of them. Other variables may include the car’s price, deposit amount, agreement duration, trade-in value, and optional extras, all of which may affect the rate at which you are offered.
- Brokers’ commission was typically based on the interest rate agreed upon – a lower rate meant lower commission, and vice versa. This was referred to as a discretionary commission arrangement, which as of 28th January 2021 is no longer permitted.
How can you check if your agreement involved a discretionary commission?
Email your finance lender with your name, date of birth, postcode, agreement number (if known), and vehicle registration number. Your lender will investigate and provide further guidance if necessary.
For More Details
Please visit the Financial Conduct Authority’s website for information on the review of discretionary commission arrangements and the temporary measures in place: www.fca.org.uk/consumers/car-finance-complaints.
Support from Anglo Scottish
If you require additional assistance, please contact complaints@angloscottishfinance.co.uk, and our team will assist you promptly.