The FCA have stated there have been a high number of complaints from customers to motor finance firms, claiming compensation for commission arrangements prior to the ban on discretionary commission arrangements in 2021.
Based on findings from both the FCA and the Financial Ombudsman Service, there is significant dispute between some firms and consumers on whether firms have breached legal and regulatory requirements.
Consequently, the FCA are using their powers under s166 of the Financial Services and Markets Act 2000, to review historical motor finance commission arrangements and sales across several firms.
The full statement from the FCA can be read
here.
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