The Central Bank has written a so-called “Dear CEO” letter to firms involved in lending for car purchases to warn them that discretionary commission arrangements (DCAs) will be banned within weeks. The commission paid to the broker by the lender is then linked to the interest rate charged – so the higher rate the car buyer pays, the greater commission is paid to the broker. The Central Bank, whose governor is Gabriel Makhlouf, has now told the industry that it will effectively ban the practice in Ireland from this summer. It was sent by Wesley Murphy, head of consumer protection supervision: credit and lending, at the Central Bank of Ireland. The outcome of this review is to be provided to the Central Bank, by September 30 this year.

Source: Irish Independent June 13, 2024 19:06 UTC