DCA LETTER

Koola

I’ve received this letter this morning. Does anyone know what it means and if my bank are saying I have a claim? TIA 

Thank you for your recent enquiry in relation to a Discretionary Commission Arrangement (“DCA”).  As you are aware the Financial Conduct Authority is currently conducting a review into DCAs to understand if widespread harm was caused, and if so whether any redress is applicable and what that redress might be.

We are responding to you by email as this is the received method of contact. Emails are not always secure, but we have been careful not to include any sensitive information.

If you have contacted us in relation to a finance agreement incepted on or after 28th January 2021, we can confirm there was not a DCA in place. We have only conducted a search of our records for finance agreements incepted prior to this date.

 We can confirm that a DCA was in place between us and the credit broker relating to your finance agreement: xxxxxxxxx 

 We understand from your request that this is the only information required to fulfil your Data Subject Access Request and therefore we now consider that your request has been resolved.

 As there was a DCA in place, we have forwarded your email to our Commissions department to log your complaint. You will receive a formal acknowledgement letter in the post, and we will begin to investigate the commission arrangement that was in place.

 Please note that as a result of the Financial Conduct Authority’s pause on complaints handling in connection with DCAs, we won’t be able to provide you with a final response until 25th September 2024 at the earliest.

 

Nasqueron

Dedicated board here: 

https://forums.moneysavingexpert.com/categories/reclaim-car-finance

There is no "claim" to have. They have confirmed the DCA model was in use, once the FCA investigation is done in September, if you were affected, you might be due some redress - remember, just having DCA is irrelevant (unless the FCA rule otherwise), it's only if your interest rate was hiked purely for more commission would you be potentially be affected. I would guess the FCA will rule that for redress, affected people would get a refund of the difference in rates they were offered vs what they qualified for with the standard 8% simple interest - it's highly unlikely, as some have speculated, you would get the whole thing back.

Remember the firm could have used DCA and it didn't apply in your deal, remember too the rate you got may simply have been reflective of your credit rating.

Your complaint has been logged, nothing to do now until they get back in touch