Automotive finance reclaim Ltd

The FCA approximates that up to 40% of all car finance agreements sold prior to January 28, 2021, may have involved some form of interest inflation. Currently, the FCA has temporarily suspended its own investigation, providing car dealers and manufacturers the opportunity to conduct their own internal assessments.

In January 2021, the Financial Conduct Authority (FCA) implemented a ban on discretionary commission arrangements' (DCAs). This action effectively prohibited lenders from permitting brokers, including car dealers, to raise interest rates on car finance deals solely to receive higher commissions, even if they didn't provide additional services. This practice was deemed unfair as consumers were not informed, leading many to assume fixed prices and forego negotiation. On January 11, 2024, the FCA initiated a significant investigation into this matter. 

Automotive Finance Reclaim Ltd refers to the process of reclaiming money that consumers may have overpaid or been misled into paying due to unfair practices in automotive financing agreements. This typically involves situations where consumers were not properly informed about certain fees, interest rates, or commission arrangements that were included in their finance deals. 

Consumers may be eligible for reclaim if they were sold car finance deals with hidden discretionary commission arrangements (DCAs) before the ban implemented by the Financial Conduct Authority (FCA) in January 2021. 

These DCAs allowed brokers and car dealers to inflate interest rates to increase their commissions.