Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Car finance DCA can anyone explain?

1 reply

thebookdragonz · 07/08/2024 10:31

Hi everyone - I am just wondering if anyone has any knowledge that they could share.

You have probably seen all the adverts online from companies offering to claim back interest for people who had a car on finance with black horse and a few other banks .

Knowing that these companies take a massive chunk of any payment you get , I wrote directly to black horse, and it turns out we were part of a Discretionary commission arrangement (dca)

From what I understand, the bank (black horse in this case) let the car dealer choose what to charge, and the more interest they charged, the bigger commission they received- we never got a say in this - we were just told that was the company that the dealer delt with .

Is this how it works? If that’s so , surely it’s the dealer ship that has been dishonest/ cheeky to get a better commission on their sale ?

I’m just wondering if I have understood this correctly, mainly because it’s a local dealership that I have bought 4 cars from over the years and I trusted them.

I didn’t think I fully understood it until black horse wrote and told me that it was applicable to us - I assumed it was black horse in the wrong
Have I understood it correctly? Thanks

OP posts:
Onceuponatime46 · 07/08/2024 10:59

Have you read this?

I have also received a letter saying the same as yours, so I will await the outcome (which has been pushed to 2025 I think).
The lenders (Black Horse for example) allowed the car dealers to add more onto the % they were charging, so ultimately Black Horse made more money…. This is my understanding anyway!

New posts on this thread. Refresh page