DCAs banned in 2021

Mrs_Chelle

Hi, it was my understanding when I initially submitted a complaint (for time period 2017-2021) that  DCAs were banned by the FCA in Jan 2021. I see the timeframe now is between apr 2007 right up to Nov 2024?
I got a car on PCP in Apr 2022 and haven't submitted complaint about this as I understood I would no longer have been affected by this.
Is it worth complaining now, or can I do nothing and opt in when the time comes?
Or am I just misunderstanding?

Nasqueron

Mrs_Chelle said:

Hi, it was my understanding when I initially submitted a complaint (for time period 2017-2021) that  DCAs were banned by the FCA in Jan 2021. I see the timeframe now is between apr 2007 right up to Nov 2024?
I got a car on PCP in Apr 2022 and haven't submitted complaint about this as I understood I would no longer have been affected by this.
Is it worth complaining now, or can I do nothing and opt in when the time comes?
Or am I just misunderstanding?

The 2021 deadline was for new sales, when it was banned, but could be covered for sales that were running up to 2024 as PCP was typically 3 years (i.e. 2024-3 = 2021). A brand new deal in 2022 would not have legally been sold with DCA

ManyWays

The FCA in the proposed Scheme has unified three different reasons to complain about commission charged.
1) that it was a DCA - this reason will not apply to any finance that started after January 2021 because it was banned at that point. This is your car finance
2) that it was at a very high commission amount. This could have applied to your car finance although it typically applies to HP from bad credit lenders rather than PCP
3) there was a "tied arrangement" between the broker and the dealer which meant that the broker could not freely select which lender to use for your car finance. This may have applied in your case

So the scheme is wider than just DCAs, hence the later end date.

MSE says it is updating its claim tool for the proposed scheme. You could come back in a few weeks and then make a separate claim for the later finance. Or you can wait until you get a letter from the provider of the later finance, which will clarify if your finance would fall within the FCA's grounds.

The advantage of claiming now is that any refund you are eligible for will probably be handled sooner