[Finance] Motor Finance Mis-selling

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Official Old Man

Official Old Man

Uckfield Seagull
Aug 27, 2011
9,710
Brighton
Listening to the radio, all I hear are adverts for anyone who purchased a car with an in-house loan.
From what I understand, it applies to loans taken out from the seller who then gets commision but the buyer was not told about it.
BUT at no point was the loan increased to cover this commision so the buyer was quoted a price and that is what they paid.
So what is the problem?
I know when I get insurance via a broker it shows a commision but if they don't tell, me the price is still the same.
 




A

ady1973

Active member
Jul 27, 2008
373
New Milton
I understand the issue was with the loan companies giving the garages one rate of interest and then the garage adding a few more % on top. The difference in the two rates was an extra commission which the garage earned and was hidden from the customer and not disclosed.
 


thedonkeycentrehalf

thedonkeycentrehalf

Moved back to wear the gloves (again)
Jul 7, 2003
9,913
I am keeping an eye on this but very wary of those companies advertising their service to help get your compensation - some of them want 40% of any payment they get for you.
 


M

Mancgull

Well-known member
Nov 28, 2011
6,116
Astley, Manchester
thedonkeycentrehalf said:
I am keeping an eye on this but very wary of those companies advertising their service to help get your compensation - some of them want 40% of any payment they get for you.
Click to expand...
If you think you had one of these agreements you can write directly to the provider to make a complaint/ claim. I did this with Black Horse.
You don’t need to go through a solicitor who will take up to 40% of the claim value.

I’ve been written to by Black Horse who have until December to resolve. They’ve already admitted there was an undisclosed commission payment for the car finance I took out so I am expecting a payout.

I got my initial letter from a template produced by Martin Lewis which you can find on t’internet.
 








beorhthelm

beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
36,497
ady1973 said:
I understand the issue was with the loan companies giving the garages one rate of interest and then the garage adding a few more % on top. The difference in the two rates was an extra commission which the garage earned and was hidden from the customer and not disclosed.
Click to expand...
think you mean pitching different deals with different % to get commission without saying there's some inducement involved, and this is naughty. the issue here is were a simple flat commission was due and not communicated. technically it's still a breach of rules. the lawyers are trying to roll all these agreements into a group compo claim. the breadth means just about every loan is treated as naughty even though no one gained.

consequences may be a large withdrawl from loans market in future, as the banks will deem its not worth the risks any more.
 
Last edited:


Herr Tubthumper

Herr Tubthumper

Well-known member
NSC Patron
Jul 11, 2003
65,343
The Fatherland
beorhthelm said:
that's a thing, and naughty. the issue here is were a simple flat commission was due and not communicated. technically it's still a breach of rules but has no consequence. the lawyers are trying to roll all these agreements into a group compo claim. the breadth means just about every loan is treated as naughty even though no one gained.

consequences may be a large withdrawl of loans in future, as the banks will deem its not worth the risks any more.
Click to expand...
Or maybe loan money and follow the laws?
 






dazzer6666

dazzer6666

Well-known member
NSC Patron
Mar 27, 2013
58,332
Burgess Hill
beorhthelm said:
think you mean pitching different deals with different % to get commission without saying there's some inducement involved, and this is naughty. the issue here is were a simple flat commission was due and not communicated. technically it's still a breach of rules. the lawyers are trying to roll all these agreements into a group compo claim. the breadth means just about every loan is treated as naughty even though no one gained.

consequences may be a large withdrawl from loans market in future, as the banks will deem its not worth the risks any more.
Click to expand...
The FCA have fully investigated..... it's not down to a class action. Clear breach of commission disclosure rules.
 


Official Old Man

Official Old Man

Uckfield Seagull
Aug 27, 2011
9,710
Brighton
ady1973 said:
I understand the issue was with the loan companies giving the garages one rate of interest and then the garage adding a few more % on top. The difference in the two rates was an extra commission which the garage earned and was hidden from the customer and not disclosed.
Click to expand...
beorhthelm said:
think you mean pitching different deals with different % to get commission without saying there's some inducement involved, and this is naughty. the issue here is were a simple flat commission was due and not communicated. technically it's still a breach of rules. the lawyers are trying to roll all these agreements into a group compo claim. the breadth means just about every loan is treated as naughty even though no one gained.

consequences may be a large withdrawl from loans market in future, as the banks will deem its not worth the risks any more.
Click to expand...
I get all of this, and that they broke the rules/law by not disclosing that the seller was given a commision.
But if you were told that, for instance, a loan of £5000 was going to cost you £107 month for 5 years and that figure didn't change at a later date, who got 'conned'?
 




beorhthelm

beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
36,497


Herr Tubthumper

Herr Tubthumper

Well-known member
NSC Patron
Jul 11, 2003
65,343
The Fatherland
beorhthelm said:
there is that, some companies believed they were following the law and seems they might not have been.
Click to expand...
How was the law miss interpreted? What I have read it seems clear as day that commission should be disclosed?
 


beorhthelm

beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
36,497
Herr Tubthumper said:
How was the law miss interpreted? What I have read it seems clear as day that commission should be disclosed?
Click to expand...
seems they mis-read that the rule for DCA loans applied to all loans.
 




Harry Wilson's tackle

Harry Wilson's tackle

Harry Wilson's Tackle
NSC Patron
Oct 8, 2003
60,562
Faversham
thedonkeycentrehalf said:
I am keeping an eye on this but very wary of those companies advertising their service to help get your compensation - some of them want 40% of any payment they get for you.
Click to expand...
I went through a period recently where I would get a call every day, always from a different number, apparently from different parts of the UK, where someone usually with an Indian accent would start on about some mis-selling claim or somesuch. Luckily I can be quire rude.
 


dazzer6666

dazzer6666

Well-known member
NSC Patron
Mar 27, 2013
58,332
Burgess Hill
Official Old Man said:
I get all of this, and that they broke the rules/law by not disclosing that the seller was given a commision.
But if you were told that, for instance, a loan of £5000 was going to cost you £107 month for 5 years and that figure didn't change at a later date, who got 'conned'?
Click to expand...
You did. That £107 includes the bit of commission you didn't know about
 








Commander

Commander

Arrogant Prat
NSC Patron
Apr 28, 2004
14,195
London
thedonkeycentrehalf said:
I am keeping an eye on this but very wary of those companies advertising their service to help get your compensation - some of them want 40% of any payment they get for you.
Click to expand...
I've never understood the issue people have with this. Either do it yourself with more time and hassle and receive full payment, or outsource it to somebody else and forget about it, and only pay a chunk to them if successful.

What's the problem? Two very clear choices.
 


dazzer6666

dazzer6666

Well-known member
NSC Patron
Mar 27, 2013
58,332
Burgess Hill
Commander said:
I've never understood the issue people have with this. Either do it yourself with more time and hassle and receive full payment, or outsource it to somebody else and forget about it, and only pay a chunk to them if successful.

What's the problem? Two very clear choices.
Click to expand...
.... choose to pay someone a few thousand quid for a less than 5 minute job. No issue but doesn't seem sensible
 


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