However, the crucial point of the CoA’s decision is that it ruled that DCAs, as well as non-DCAs, were illegal in the first instance, meaning those who signed up to almost any car finance deal between 2007 and now could be eligible to file a claim.
As you’d expect, this has opened up the floodgates for what could be, according to experts, billions of pounds in payouts – perhaps on a similar level to the PPI scandal of the early 2010s.
With banks concerned that a redress scheme could be catastrophic for the industry, the UK Chancellor, Rachel Reeves, recently led a Treasury application to intervene in the Supreme Court’s final ruling. However, this was later rejected, with the FCA and National Franchised Dealers Association instead granted permission to get involved.
Looking towards next month’s ruling, the FCA says it no longer plans to announce the outcome of its investigation in May, instead promising to “confirm within 6 weeks of the Supreme Court’s decision if we are proposing a redress scheme and if so, how we will take it forward.”
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