FCA delay on discretionary commission arrangements decision

What the delay means for lenders, motor dealers, CMC’s, FOS and customers

Thursday 19th September 2024 UK: 13.00 1 hour

Sponsored by

Speakers:

• Rachael Jones, director of automotive finance, Auto Trader
• Mike Pierce, managing director, Sytner Finance, Sytner Group
• Wayne Gibbard, partner, Shoosmiths
• Moderated by David Betteley, head of content, Asset Finance Connect

Expert panel considering the likely near-future as the industry braces itself for the delayed decision on how the FCA intends to deal with discretionary commission arrangement (DCA) complaints.

On 30th July 2024 the FCA extended their period of review, considering whether motor finance customers have been overcharged as a result of the historic use of DCA. Inevitably their delay announcement has renewed speculation about the implications of the review on the wider industry including lenders, motor dealers, claims management companies, FOS and for customers.

Stephen Haddrill, director general of the FLA, welcomed the July delay noting the complexity involved in reaching a decision, for example before the outcome of a Judicial Review into FOS’s decision relating to a prior DCA claim. They frame the FCA intervention as an opportunity to prevent more of the inconsistent outcomes that have occurred recently. This is a polite way of saying an intervention is good because it may constrain FOS future freedom to act capriciously. They therefore welcome the news that an FCA intervention is becoming more likely.

Lenders however may feel differently as the delay extends the period of uncertainty faced by the market; as the volume of complaints continues to grow; as the prospect of redress appears to be increasing; and as estimates of the redress bill remain high (RBC Capital Markets predict £2.5bn for Lloyds, £1.1bn for Santander, £350m for Barclays and £250m for Close Brothers).

• Learn what industry should expect at each step in the FCA’s new timeline. Are further delays likely?
• Consider the likely impact on industry participants including lenders, motor dealers, claims management companies, FOS and for customers
• Assess the importance of recent political, economic and regulatory developments on the outcome including the change in Government; the economic growth imperative; and the recent FCA consultation on streamlining consumer finance.

Webcast moderator David Betteley is Asset Finance Connect’s head of content, and head of its auto finance community. Betteley was global head of Financial Services for Jaguar Land Rover and prior to that was an SVP at Toyota Financial Services.

REGISTER NOW USING THE FORM ON THE RIGHT