Startline Motor Finance and the FCA's DCA Ban: What You Need to Know

Startline Motor Finance, a key player in the UK car finance market, has been navigating the significant changes brought about by the Financial Conduct Authority's (FCA) ban on Discretionary Commission Arrangements (DCAs). This article explains what DCAs are, how the ban impacts Startline and its customers, and what to do if you have a complaint.

What are Discretionary Commission Arrangements (DCAs)?

DCAs were a common practice where car dealers or brokers could set or adjust the interest rate on car finance agreements. Their commission was linked to the interest rate, creating an incentive to charge customers higher rates. This often led to consumers paying more for their car finance than necessary.

The FCA Ban and its Impact on Startline

The FCA banned DCAs in January 2021 to protect consumers and promote fairer lending practices. This ban has led to a market-wide review of past car finance agreements, including those arranged through Startline Motor Finance.

How Startline is Responding

Startline is actively cooperating with the FCA's review and has implemented changes to its complaint handling procedures in line with FCA guidance.

• Complaint Handling: For complaints about DCAs made after November 17, 2023, Startline will not provide a final response within the standard eight weeks. This delay is due to the FCA's request for firms to pause responses while the review is ongoing. The deadline for these responses has been extended to September 25, 2024.
• Escalating Complaints: Customers who are unhappy with the final response they receive from Startline have up to 15 months to escalate their complaint to the Financial Ombudsman Service, provided the final response falls within a specific timeframe set by the FCA.

What This Means for Consumers

The FCA's crackdown on DCAs signals a shift towards greater transparency and fairness in the motor finance industry. Consumers can now be more confident that they are getting a fair deal on their car finance.

If you have a complaint about a car finance agreement arranged through Startline Motor Finance, you can contact the company directly or escalate your complaint to the Financial Ombudsman Service.

For more information, visit the following websites:

• Startline Motor Finance: https://startlinemotorfinance.com/customers/make-a-complaint/
• Financial Conduct Authority: https://www.fca.org.uk/news/statements/fca-undertake-work-motor-finance-market
• Financial Ombudsman Service: https://www.financial-ombudsman.org.uk/