Discretionary Commission Arrangement

[Deleted User]

People can sue lenders if they want to. There is plenty of evidence of success and plenty of failure. It is a risky business and I wouldn’t advise anyone to do it unless they were comfortable with that risk. However, without pioneering litigation you don’t get proper outcomes for consumers. The Plevin case in  PPI is a perfect example, that risk turned into an FCA decision rightfully entitling millions more to billions more. People often forget that PPI started with a court case in the 90s against Blackhorse that had a 10 year gagging order on it. When it came out, the talk started, the 2005 rules came in and the rest we know. I am not suggesting everyone sue their lender, I certainly can’t be fussed with that, I was saying they can and there are arguments and angles being pursued in the courts around undisclosed commission itself being the problem. Again, only lenders, never dealers. Nothing to do with dealers as the CCA and the relevant CONC rule on commission is theirs to bear.

dunstonh

 The Plevin case in  PPI is a perfect example, that risk turned into an FCA decision rightfully entitling millions more to billions more.

It's worth noting that the FCA outcome differed from the courts.   This is relevant to DCA and your other comments as the FCA is unlikely to require redress to be paid where DCA existed in the contract but wasn't used or it was used positively (by lowering the interest rate).

[Deleted User]

Yes, many people were unhappy with the FCA outcome and felt 50% was a ridiculous tipping point. Some accepted it and moved on, others litigated for either all of it or the rest from 50% to 0%. If the FCA outcome isn’t satisfactory to you or excludes you then you have the choice to do nothing or, if you think the courts will give a better outcome, then you litigate. Either on your own or with representation. The FCA CEO has alluded that whatever outcome they reach will not please everyone and he is quite right. A Tipping point of 50% was ridiculous and the consultation after was a joke, banks on one side, consumer groups like MSE and representatives on the complete opposite. They just talked around the houses and stuck with 50%. I hope to see a more consumer friendly outcome the avoids the need for that this time.