The Financial Conduct Authority (FCA) has launched an investigation into discretionary commission arrangements in car finance, which could affect millions of consumers. This includes those who entered into PCP or HP agreements through dealerships like the Listers Group. As a family-owned dealer group based in Coventry, Listers Group operates over 40 dealerships across the Midlands and East, offering a wide range of brands including Audi, BMW, Mercedes-Benz, Volkswagen, Toyota, Volvo, Jaguar, Land Rover, SEAT, and Skoda.
Who is Listers Group?
Listers Group is a well-established car dealer group with a strong presence in the Midlands and East regions. Operating more than 40 dealerships, they stock an impressive range of brands such as Audi, BMW, Mercedes-Benz, Volkswagen, Toyota, Volvo, Jaguar, Land Rover, SEAT, and Skoda. As a family-owned business, Listers Group is committed to providing high-quality customer service and vehicle finance solutions.
How Listers Group Finance Agreements Work
When purchasing a car from Listers Group, customers can opt for finance agreements such as PCP (
Personal Contract Purchase) or HP (
Hire Purchase). These finance plans are arranged through the dealer but provided by third-party lenders like
[Black Horse](https://mlj.org.uk/lenders/black-horse),
[Close Brothers](https://mlj.org.uk/lenders/close-brothers-motor-finance),
[MotoNovo](https://mlj.org.uk/lenders/motonovo-finance), and
[Santander Consumer Finance](https://mlj.org.uk/lenders/santander-consumer-finance). The dealer receives commission based on the type of agreement and the terms offered to customers. This practice is known as a discretionary
[commission arrangement](https://mlj.org.uk/glossary/discretionary-commission-arrangement) (DCA), which has come under scrutiny from the FCA.
The FCA Investigation into Discretionary Commission Arrangements
The FCA investigation focuses on the period between 6 April 2007 and 1 November 2024, covering approximately 14 million car finance agreements worth £8.2 billion in total (FCA estimate). The investigation aims to determine whether lenders operating DCAs have engaged in fair business practices and if consumers were adequately informed about the terms of their finance agreements.
How to Check If Your Listers Group Finance Agreement Is Affected
To determine if your car finance agreement with Listers Group is affected by the FCA investigation, review your finance documentation carefully. Look for details such as the lender’s name, interest rate, and the dates when your agreement was signed. Common lenders used by dealers include Black Horse, Close Brothers, MotoNovo, and Santander Consumer Finance.
If you suspect that your finance agreement with Listers Group is affected by unfair practices related to DCAs, it’s important to take action directly with the lender who provided the finance. Identify the name of the lender from your finance paperwork and contact them to raise a complaint. You do not need a
claims management company; complaints are free and can be made directly to the lender.
If you do not receive a satisfactory response within eight weeks, you may escalate your complaint to the Financial Ombudsman Service (FOS) for further investigation. The FOS provides an independent review process that is free of charge to consumers.
Sources and references
- Financial Conduct Authority (FCA). "Discretionary commission arrangements in car finance." [Accessed 2024]
- Listers Group. "About Us" https://www.listers.co.uk/about-us/ [Accessed 2024]