Car finance - Supreme Court Judgment 1st August.

Tibby28

I have 4 claims that have DCA so just waiting but the chancellor can put in place after the judgment legislation that could cap the compensation which is not fair, its money we are owed all the monies that were earned from this doesn't get paid back so why we shouldn't be out of pocket .  It would be politically controversial in that it would be seen as the government are siding with the banks.     Just so you are aware if anyone hasn't put a claim in, from January 2026 any compensation paid out on claims after this date would not see the standard 8% interest charged on what you would have got from when the finance was paid until you received the compensation it will be changing to 1% above the bank of England base rate which will be less.  If you have already put in that you had the finance and it has been confirmed you had DCA before this date you should get the 8%.

MyRealNameToo

Tibby28 said:

I have 4 claims that have DCA so just waiting but the chancellor can put in place after the judgment legislation that could cap the compensation which is not fair, its money we are owed all the monies that were earned from this doesn't get paid back so why we shouldn't be out of pocket .  It would be politically controversial in that it would be seen as the government are siding with the banks.     Just so you are aware if anyone hasn't put a claim in, from January 2026 any compensation paid out on claims after this date would not see the standard 8% interest charged on what you would have got from when the finance was paid until you received the compensation it will be changing to 1% above the bank of England base rate which will be less.  If you have already put in that you had the finance and it has been confirmed you had DCA before this date you should get the 8%.

You're being fairly presumptuous on the outcome of the court case; the judges may decide the lower court made an error and actually DCA and non-DCA commissions were perfectly legitimate at the time. 

Personally suspect there will be an issue with DCA but cannot see the Court of Appeal's decision on non-DCA commissions standing as the decision was crazy. Think the government will only step in if non-DCA commission is considered problematic as that has the potential to have far too big an implication. 

Nasqueron

Tibby28 said:

I have 4 claims that have DCA so just waiting but the chancellor can put in place after the judgment legislation that could cap the compensation which is not fair, its money we are owed all the monies that were earned from this doesn't get paid back so why we shouldn't be out of pocket .  It would be politically controversial in that it would be seen as the government are siding with the banks.     Just so you are aware if anyone hasn't put a claim in, from January 2026 any compensation paid out on claims after this date would not see the standard 8% interest charged on what you would have got from when the finance was paid until you received the compensation it will be changing to 1% above the bank of England base rate which will be less.  If you have already put in that you had the finance and it has been confirmed you had DCA before this date you should get the 8%.

You are mixing up several things here

The supreme court is ruling on the hidden commission argument i.e. that salesman was paid commission by a lender which wasn't necessarily disclosed in big letters. Suggesting that every car deal ever should result in this sort of commission being refunded is ludicrous and will affect basically every part of the world of finance, even Martin has said it's a bad idea long term. The reason the chancellor might intervene on this case is obvious - to avoid destroying the whole finance industry in the UK.

The discretionary commission complaints are separate and the FCA have advised that they will issue an update after 6 weeks from tomorrow. You are not owed anything, nor does having DCA mean you were overcharged - some was neutral (applied but not used) and some was even positive (used to lower your rate to get a deal through) - presumably you would be happy paying the lender back the extra interest you saved?

DCA with negative interest should result in the extra payments being refunded but even then, like with PPI, it was not banned when it was being done so this is all retrospective hence it's so complicated. 

dunstonh

I have 4 claims that have DCA so just waiting but the chancellor can put in place after the judgment legislation that could cap the compensation which is not fair, its money we are owed all the monies that were earned from this doesn't get paid back so why we shouldn't be out of pocket .

Firstly to claim it is not fair is daft.  You got the lending on the terms you agreed.   Anyone that gets a payout is getting lucky due to a loophole.   

Plus, DCA can be positive, negative and  neutral.  Only those that are negative are expected to get something.   So, being told your agreement had DCA doesnt mean you will get something.   

Also, the Government is not expected to legislate on DCA.   It is only on commission in general as most people believe the courts made a mistake.    Although the legislation must be poorly written for that to happen.

  It would be politically controversial in that it would be seen as the government are siding with the banks.   

That is just a childish point of view, and hopefully, mature adults will realise that the courts were wrong. In many comment sections on articles on the subject, you typically see most comments taking the responsible and adult point of view that there shouldn't be any refunds and that the court decision was barmy.

Just so you are aware if anyone hasn't put a claim in, from January 2026 any compensation paid out on claims after this date would not see the standard 8% interest charged on what you would have got from when the finance was paid until you received the compensation it will be changing to 1% above the bank of England base rate which will be less.

That is not possible to say as the FCA consultation is leading towards a section 404 redress scheme being set up rather than using the complaints process.   i.e. all complaints submitted so far will likely be cancelled and diverted to the redress scheme, and the FCA will decide the terms of the redress scheme.

Laura_Norder

The Supreme Court's judgment is a triumph for common sense.  It is basically a reiteration of the old legal principle of 'buyer beware'. 

Badboi

Claims companies back to chasing ambulances,then 

Admiral_Barbarossa

So Dodgy Dave’s Used Cars were sold legit!

Sorry grifters, you’re not getting a penny!

Vitor

Where there's blame, there isn't a claim

Organgrinder

The court's judgement seems sensible to me. Anyone buying a car surely knows the dealer is acting in their interests not the customers. 

That said I have a DCA on a loan from Black Horse back in 2011. I agreed a price for the car and got given a monthly payment figure. All was good. When I came to sign for the car the part ex price had gone up, the loan come down and the interest rate on the loan had gone up. The monthly payment stayed the same. I was told it made sense as it meant I was borrowing less although I'd end up paying the same.

I now realise what was happening was they were probably getting a far bigger commission that was more than the amount they'd increased the part ex price by. (And of course lowering the potential margin on the car I'd part ex'd).

The question for me is, was I ripped off? Quite honestly, no. I paid what I was happy to pay. Did the dealer make more money? Probably yes. Will I take any compensation if offered? Absolutely!

GingerTim

Hopefully that'll be an end to those irritating radio and Youtube ads (especially the Tyson Fury one).

Though I hope the parasites have paid for several months' worth of ads in advance and wasted their money.

MyRealNameToo

GingerTim said:

Hopefully that'll be an end to those irritating radio and Youtube ads (especially the Tyson Fury one).

Though I hope the parasites have paid for several months' worth of ads in advance and wasted their money.

The pool has shrunk but not drained. Probably see more of them advertising now looking for DCA customers before we get news of an auto-enrollment scheme