Discretionary Commission - BMW finance

dunstonh

 Let's see what that brings.  lets hope I receive a reply before 25th September.

You wont get a reply before 25th September.    Its all been pushed back to late 2025 and could go further in 2026 or 2027.

Greengrass09

Hi, I have heard back from BMW but am confused. What does this mean and why wait until after FCA deadline to provide more details?

'We confirm that a Fixed Commission was used in connection with your agreement.
Next Steps - We've logged this as a complaint for you. You'll receive a written acknowledgement letter soon.

We'll provide you with our final response after 4 December 2025, which is the Financial Conduct Authority's (FCA) current deadline.

dunstonh

Hi, I have heard back from BMW but am confused. What does this mean and why wait until after FCA deadline to provide more details?

The FCA have not published their report as they are waiting on the court cases and their own interpretation of law and guidelines.    So, the FCA has suspended the complaints process for any complaint regarding commission on motor finance.   The exception being where commission was not paid in any way, where those complaints can be closed down.

So, BMW finance has to wait to see what the FCA instructs in all the different areas of commission.  

Currently, that is later in 2025 as mentioned, but there is an expectation that this will be pushed back to 2026 or even 2027 depending on the court cases and appeals.

Greengrass09

Does this mean i might be entitled to compensation? Thank you 

DullGreyGuy

Greengrass09 said:

Does this mean i might be entitled to compensation? Thank you 

The fact the agreement wasn't subject to DCA reduces the chances but until the court cases have played out anyone giving any kind of answer is just wet fingering it

Summersun578

I received the following email after the initial acknowledgement:

Thank you for your enquiry about the Financial Conduct Authority (FCA) review of discretionary commission arrangements (DCA). We've looked into this for you.

FCA Review

The FCA review relates to:motor finance used to buy a vehicle before 28 January, 2021hire purchase agreements and personal contract purchase agreements where a DCA was used.

The review does not apply to agreements that started on or after 28 January, 2021 or to contract hire agreements.

We can confirm that a DCA was used on your agreement and we've logged a complaint for you. You'll receive a written acknowledgement letter for this soon and we'd like to reassure you there is no need for you to do anything at this stage.

I then received an email yesterday stating:

We’re writing to update you about your enquiry into Discretionary Commission Arrangements (DCA).

In our response we told you that your agreement was not included in the Financial Conduct Authority’s (FCA) review into DCA’s. Due to a recent Court of Appeal decision

on 25 October 2024, the FCA is now looking into how non-DCA’s were paid in the past for motor finance.

Following this we’ve logged a complaint for you.

The FCA has made new rules to give firms more time to respond to these types of complaints while it conducts its review. This means we cannot provide a response to your complaint until after the FCA has finished its review and decided what to do next.

The FCA has therefore given firms until after 4 December 2025 to provide a final response.

We’ll contact you if we need more information, otherwise, you don't need to do anything

Should I write to them as the first email says I did have a DCA and in second email  I don't? Advice or similar experience would be helpful, thanks in advance 

dunstonh

Should I write to them as the first email says I did have a DCA and in second email  I don't? Advice or similar experience would be helpful, thanks in advance 

You don't do anything.  Nothing is going to happen until the FCA have completed their consultation and published their report, which is expected in 2026.   

The 4th December deadline is expected to be put back again, or all complaints made will be converted to an auto opt-in to the proposed redress scheme.  Again, the FCA will confirm in due course.

DCA comes in different forms. Some positive, some neutral and some negative.   However, the court cases have moved on from DCA to commission in general.