Discretionary Commissions Arrangements
This guidance relates to arrangements for complaints which related to Discretionary Commissions Arrangements, or DCAs. Under these arrangements, the commission received by the credit broker from the lender is linked to the interest rate payable by the customer under a credit agreement to fund the purchase of a motor vehicle and the broker has a discretion to set or adjust that rate.
The FCA’s view is that DCAs can harm consumers because they create conflicts of interest by incentivising the broker to earn more commission by increasing the interest rate th e customer pays. This is why it banned DCAs in January 2021. The FCA is now undertaking a review of DCA arrangements which existed prior to the ban to assess whether customers may be due redress (compensation) from motor finance firms because they paid too much for their car loans.
Fairview Trade Sales has never received any broker commission under a DCA. Accordingly the changes announced by the FCA in respect of these types of complaint do not apply to our business.
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Fairview Trade Sales are proud to be a SAF approved company.
Specialist Automotive Finance (SAF) was introduced by the FLA, the leading trade body for the UK motor finance industry, in 2007, to help raise the standard of car finance information provided in showrooms for the benefit of car buyers.
Our SAF Approved status has been awarded as all our customer-facing staff involved in the provision of motor finance information have successfully undertaken the SAF Expert test.
This provides assurance that we are a professional and knowledgeable company committed to driving high standards, and our colleagues and trained and dedicated to;
- Helping you understand all the different finance options available, and how these can be tailored to meet your specific car-buying needs
- Supporting you to make an affordable and appropriate choice that is right for you and your car
- Guiding you through the finance application process to make it simpler, quicker and more convenient to complete
- Helping you deal with your car and your finance as a combined purchase
