Discretionary Commission Arrangements - Complaints and Refunds
Novuna is a prominent financial services company in the UK, previously known as Hitachi Capital (UK) PLC. It operates under the new name of Mitsubishi HC Capital UK PLC since its acquisition by Mitsubishi HC Capital Inc. This change reflects its broadened capabilities and international backing, which aims to bolster its financial services offerings from personal loans to business finance solutions (Novuna).
Novuna offers a wide range of financial products, including personal finance, vehicle solutions, and business finance. It is particularly noted for its work in the vehicle finance sector, where it provides loans and financing options for car purchases (Novuna).
Regarding the discretionary commission scandal, Novuna, like many other finance providers, was affected by the Financial Conduct Authority's (FCA) regulations that came into effect in January 2021. These regulations were introduced to curb practices where car dealers or finance providers had the discretion to set the level of commission they earn from arranging car finance for customers. This practice often resulted in higher interest rates for consumers, motivated by higher commissions for brokers, which the FCA identified as not in the best interest of consumers (Novuna) (Scott+Scott).
Following the ban, Novuna, along with other financial institutions, has had to adapt to these new regulations. They have been involved in addressing complaints and adjusting their business practices to comply with the new, more transparent standards set by the FCA. This includes extending complaint handling time frames and ensuring that past and future agreements are aligned with the new regulatory environment (Novuna).
In summary, Novuna is a key player in the UK financial services market with a strong backing by Mitsubishi HC Capital Inc., offering a wide range of financial products and services. The company has been navigating the changes brought about by the FCA's ban on discretionary commissions, aiming to ensure fairer treatment of consumers and more transparent financial practices.