Car Finance Scandal

[thebet365]

Apologies if there has already been a thread on this, I've had a quick look and couldn't see anything.

There's currently an investigation going on by the FCA into "Discretionary commission" payments made by banks to car sales companies when sorting us out finance for a new car.
They're basically acusing car sales people of upping Interest rates on loans to get more commission from the banks without us being told about it at the time.

This practice is now banned since January 2021 but anyone that's taken out finance before that could have been effected. Nothing is happening until the FCA announce their findings and punishments (If any). This is expected in September this year.

In the mean time we're being encouraged to put our claim in now to see if we're effected by it.

Martin Lewis has done a full article on it here

www.moneysavingexpert.com/reclaim/reclaim-car-finance/#free-tool

Which also includes a tool to create a Email template to send to your finance provider.

I've sent 2 out both to Barclays Partner finance and they replied within 2 weeks confirming my loans did have the discretionary commission attached to it so I'm now in the queue waiting to see what the FCA say in September.

They're fully expecting this to be the next ppi type payout.

[superjw]

I’ve had finance on a few cars during the timeframe and tbh I have no idea who the finance companies were. Moved house in between and god knows where the paperwork ended up. Can remember the cars but have nothing on the finance 😡

When this gets off the ground I’m fairly sure there will be firms that will help with getting the right info

[stiggerstackle]

Apr 18, 2024 17:10:33 GMT superjw said:

I’ve had finance on a few cars during the timeframe and tbh I have no idea who the finance companies were. Moved house in between and god knows where the paperwork ended up. Can remember the cars but have nothing on the finance 😡

When this gets off the ground I’m fairly sure there will be firms that will help with getting the right info

Same here mate, had a few cars over the time but no idea who through!

[mrnovember]

Anyone manage to get a claim in? I've got mine registered.

Seen a load of car dealerships moaning about the court ruling. They've been hoodwinking motorists to the tune of £300m a year for yonks and they have the temerity to claim hardship. Bastards.

[iancransonsknees]

I've chucked a couple in with RCI and Mercedes Finance. Be interesting to see what comes of it.

[NassauDave]

Nov 5, 2024 21:47:51 GMT iancransonsknees said:

I've chucked a couple in with RCI and Mercedes Finance. Be interesting to see what comes of it. [/quot

Same here, and I don't even have a car.

Fingers crossed.

[asht]

Worth having a read through this.

At the end there's a tool you can use that writes an email for you for the right email address.

Don't go to one of those companies as they'll take a % of anything you get from it.

If you don't know who provided your finance it's worth going onto your credit report OR contact the dealer you had the car from.


www.moneysavingexpert.com/reclaim/reclaim-car-finance/

[flea79]

it goes deeper than this and a lot of people are getting very nervous

when you pay for insurance on direct debit there is generally an overrider given to the broker/price comparison site that is not declared...

and for those interested the FCA recently ruled that multi occupancy products where a commission is paid from the broker/insurer too the managing agents must now be declared

[thebet365]

There's 2 court cases that have been going on, the 1st regarding the Discretionary commission scandal which looks almost certain to have to be compensated now.

The other is the basic commission, which is what finance companies have been paying to dealers just for helping sort finance for customers. The court of appeal a few weeks back have ruled that the finance company paperwork hasn't been transparent enough and should have highlighted the amount of commission being paid just for the brokerage.

Could be a double whammy for them.