The High Court has found in favour of the consumer when reviewing a case relating to Discretionary Commission Arrangements (DCA). The case is not directly related to the separate the Court of Appeal rulings from 25 October (which were recently granted permission to appeal by the Supreme Court).
Today’s update (17 December) relates to the Financial Conduct Authority’s review into use of DCAs before they were banned in 2021. A case relating to Barclays Partner Finance – which found in favour of the consumer – has been reviewed by the High Court, who upheld the original decision.
The Financial Ombudsman Service was found to have interpreted FCA rules and the Consumer Credit Act 1974 correctly. It was determined that the relationship between the lender and the borrower was unfair in the circumstances, and the commissions arrangement was not adequately disclosed.
More details, plus comments from the FCA can be found on the Authority’s website.
The BVRLA recently represented member views in a consultation by the FCA that considered extending the time firms have to respond to motor finance complaints. The outcome of the consultation is expected later this week and the association will update members as soon as possible.
