Renault/Mobilize - Recent DCA response and help...

NickP91

Hello,

So I have just had confirmation back from 2 vehicles I had through Renault. My first vehicle is confirmed to have meet the criteria and my 2nd vehicle hasn't.

What I would possibly like some help with is the following statement on my first vehicle,

'We can also tell you that an additional commission payment was also made to the dealer. This was a fixed amount meaning it does not meet this criteria.'

Further down the email, it also mentions;

'For the fixed commission payment:
If you decide to make a complaint with us about this payment, the temporary rules would not apply.
If you want to complain about this fixed payment, please let us know by contacting us.'

I'm a little unsure of what this means. If someone can explain what this would have been and is it worth making the individual complaint on this fixed commission payment?

Nearlyold

Can you post the whole wording re the 1st Vehicle. The issue is not about lenders paying commission to the dealer, there is no problem with that, its about the ability of the dealer to increase the interest rate so that they got a larger commission. Are they saying there were two commissions paid to the dealer one fixed and the other discretionary?

NickP91

Nearlyold said:

Can you post the whole wording re the 1st Vehicle. The issue is not about lenders paying commission to the dealer, there is no problem with that, its about the ability of the dealer to increase the interest rate so that they got a larger commission. Are they saying there were two commissions paid to the dealer one fixed and the other discretionary?

Yes Sure;

Thank you for contacting us. You've asked us whether your agreement was one where we paid a Discretionary Commission Arrangement (DCA) to the supplying dealer. We've given your enquiry the reference number below, which we'll use in all future correspondence. Please make a note of it:

Reference Number xxxxxxxx Agreement Number xxxxxxxx Vehicle Registration xxxxxxx

Please note, if you have submitted an enquiry regarding more than one vehicle, you will receive a separate email for each vehicle. The Financial Conduct Authority (FCA) banned DCAs within the motor finance industry on 28th January 2021. On the 11th January 2024 the FCA announced that they are reviewing the historical use of DCAs and as a result have introduced temporary new rules on how certain complaints are to be dealt with whilst they conduct their review.   These temporary rules only apply if your Motor Finance Agreement meets the following criteria - Your Agreement started before 28th January 2021 and was on a Hire Purchase (HP) Agreement, including Personal Contact Purchase (PCP) and There was a DCA in place between us and the supplying dealer. We have reviewed your Agreement and can tell you that your agreement meets this criteria. We can also tell you that an additional commission payment was also made to the dealer.  This was a fixed amount meaning it does not meet this criteria.   What does this mean for you? We will now record your enquiry relating to the DCA as a complaint and start looking into this complaint. Under these temporary rules the usual 8-week time period for us to investigate and provide our Final Response Letter has been paused for 37 weeks, beginning 11th January 2024 and ending 25th September 2024.   During the pause period, unless we issue you with our Final Response Letter, you will not be able to refer your complaint to the Financial Ombudsman Service (FOS). However, we will continue to investigate your complaint and keep you up to date on the progress of our investigation. We may also contact you if we need any additional information from you.  Once the pause ends, the 8-week time limit will start (unless the FCA decides otherwise). This means that if we have not already provided you with our Final Response Letter, we will have 8 weeks to do so. This means you may not receive our Final Response Letter until 20th November 2024.    After this time, you will then be able to refer your complaint to FOS if you are unhappy with our response. Our Final Response Letter will include details of your rights to refer your complaint to FOS and their details. If the FCA makes further rules, we'll be in touch with you.  For more information, please refer to the FCA’s website:  For the fixed commission payment: If you decide to make a complaint with us about this payment, the temporary rules would not apply.  If you want to complain about this fixed payment, please let us know by contacting us.       If you have any questions, please contact our Customer Services team. This can be done by phone 0333 009 0233*, email motorcommissionenquiries@mobilize-fs.com or by writing to us at: Customer Services Mobilize Financial Services Denham Way Maple Cross Rickmansworth  WD3 9YS   We are open Monday to Friday 8:30am to 7:30pm and Saturdays 9am to 5pm.

Nasqueron

They are stating what the situation is, giving you your rights. The DCA complaint will go on the pile until the FCA finishes. You can of course complain about the commission element, as you could complain about the shoe colour of the salesman or the pattern on the carpet, however, having commission is not a problem and your complaint will almost certainly not go anywhere.

dunstonh

I'm a little unsure of what this means. If someone can explain what this would have been and is it worth making the individual complaint on this fixed commission payment?

As mentioned, the whole issue is not about payment of commission.      
And the letter has made it clear that they are treating it as a complaint pending the FCA review.

So, you just wait until after September when the FCA review is complete (which may get pushed back as historical data is coming in slower than expected.  Plus, if the FCA find there is wrongdoing, it could be 18-24 months for some of these cases to be looked at).