The Financial Conduct Authority (FCA) has identified that approximately 14 million car finance agreements were affected by discretionary commission arrangements (DCAs), resulting in an estimated £8.2 billion total overpayment, with the average consumer losing around £700 during the period from 6 April 2007 to 1 November 2024. Many consumers purchased Fiat vehicles through TrustFord or similar dealer groups on Personal Contract Purchase (PCP) or Hire Purchase (HP) finance. Despite TrustFord no longer stocking Fiat models, many consumers still have ongoing finance agreements with lenders that originated from these purchases.
Fiat Finance at TrustFord
When purchasing a Fiat vehicle through TrustFord or any other dealer group, the financing process typically involves either PCP or HP arrangements. In such scenarios, dealers like TrustFord may receive additional compensation based on the type of agreement consumers choose. This extra payment is often referred to as a discretionary
commission arrangement (DCA), which can incentivise dealers to promote certain finance products over others.
How Does DCAs Affect My Fiat Finance?
How do I identify if my car finance agreement includes a DCA? In many cases, the dealer's choice of lender and associated financial product may have been influenced by these arrangements. TrustFord acts as an intermediary between you and the actual lender; therefore, it is crucial to understand that complaints should be directed towards your lender rather than TrustFord.
Finding Your Lender
Who provides my car finance if I bought a Fiat through TrustFord? To determine which lender financed your Fiat purchase at TrustFord, carefully review your contract documentation. The finance agreement will contain the name and contact details of the lending institution. This information is critical for initiating any complaints or inquiries related to your car finance.
How do I complain about my car finance directly? If you believe that your Fiat purchase through TrustFord was affected by unfair discretionary commission arrangements, you can initiate a complaint with the lender identified in your finance agreement. You do not need to hire or work with a
claims management company; instead, contact your lender directly and follow their complaint procedures for free assistance. Remember, you have the right to seek redress from your lender without any additional costs.
Sources and references
- Financial Conduct Authority (FCA) estimates: 14 million agreements affected, £8.2 billion total overpayment, £700 average loss.
- Period covered by FCA investigation: 6 April 2007 to 1 November 2024.
- TrustFord operates as a UK-wide car dealer network but is distinct from the lenders involved in financing Fiat purchases.