FCA warns drivers about car finance claim fees

The Financial Conduct Authority (FCA) has warned drivers about companies offering assistance with car finance claims, potentially costing them a significant portion of any award. The FCA is concerned about firms charging high fees for helping consumers claim compensation related to discretionary commission arrangements (DCAs) on car finance deals. These arrangements, banned in 2021, allowed dealers to inflate interest rates for higher commissions. A Supreme Court decision next month will determine the legality of DCAs. The FCA is consulting on a potential redress scheme for affected consumers, advising them to avoid unnecessary third-party services.