PCP DCA and Fixed Commission

Geecee1

Hi. I have claims in for 2 vehicles and have received an email back advising that one of the vehicles has a confirmed DCA amount, this will be subject to the FCA pause and investigation. which I know means I have to just wait,

The other vehicle has Fixed Commission in place. I will receive a formal response  as my enquiry goes through the motions. But they also ask if I want to make a complaint about this fixed payment. 
Am not sure if I should respond to confirm if I should make a complaint about this fixed commission. 

Any advice on this would be greatly appreciated. 

Thanks in advance.

DullGreyGuy

Geecee1 said:

Hi. I have claims in for 2 vehicles and have received an email back advising that one of the vehicles has a confirmed DCA amount, this will be subject to the FCA pause and investigation. which I know means I have to just wait,

The other vehicle has Fixed Commission in place. I will receive a formal response  as my enquiry goes through the motions. But they also ask if I want to make a complaint about this fixed payment. 
Am not sure if I should respond to confirm if I should make a complaint about this fixed commission. 

When did you take out the loan? Did the paperwork disclose the commission?

DCA is potentially an issue even if the commission was disclosed because of the conflict of interests. Fixed commission isn't a problem if its properly disclosed.

Nasqueron

Geecee1 said:

Hi. I have claims in for 2 vehicles and have received an email back advising that one of the vehicles has a confirmed DCA amount, this will be subject to the FCA pause and investigation. which I know means I have to just wait,

The other vehicle has Fixed Commission in place. I will receive a formal response  as my enquiry goes through the motions. But they also ask if I want to make a complaint about this fixed payment. 
Am not sure if I should respond to confirm if I should make a complaint about this fixed commission. 

Any advice on this would be greatly appreciated. 

Thanks in advance.

Sellers get commission, that's part and parcel of sales, complaining the salesman got paid so he can pay his mortgage is a hiding to nothing. The DCA issue was related to your interest rate being artificially inflated so the sales team got more commission (though do note that some people had neutral DCA (it was available, but not used) or even positive DCA (your interest rate was reduced) and it's unlikely you would get any money back as you didn't lose out) - you cannot complain about commission in general under the DCA complaint scheme

Geecee1

Thanks all. My initial thought was if it was fixed commission then that was the usual terms. But the part that threw me was their response asking if I wanted to complain about it.

dunstonh

Geecee1 said:

Thanks all. My initial thought was if it was fixed commission then that was the usual terms. But the part that threw me was their response asking if I wanted to complain about it.

That is a pretty standard response in case they have misunderstood the original enquiry.

DullGreyGuy

Geecee1 said:

Thanks all. My initial thought was if it was fixed commission then that was the usual terms. But the part that threw me was their response asking if I wanted to complain about it.

DCA creates a conflict of interest and is currently under investigation by the FCA because of the conflict of interests  if used nelgatilvey against you. DCA technically can be used in a positive way, where the dealer lowers the APR to secure the deal and as a consequence receives less commission for the finance (this is presumably offset by higher commission or margin for having made the sale).

For fixed commission this really comes down to an infamous case where the claimant discovered that 75% of what they were paying was not for the product they were buying but for the commissions received by the supply chain rather than for the product itself. Its a quirk of financial services though as in other worlds markups are unregulated and can be more than 75% without issue