[Finance] Motor Finance Mis-selling

[Official Old Man]

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.

 

[ady1973]

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]

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.

 

[Mancgull]

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.

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.

 

[RandyWanger]

Martin has a template and guide here: https://www.moneysavingexpert.com/reclaim/reclaim-car-finance/

 

[sully]

Thanks for the reminder. I got as far as looking on money saving expert a while ago but didn’t fill in the template. I’ll pop it back on my to do list.

 

[beorhthelm]

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.

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.

 

[Herr Tubthumper]

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.

Or maybe loan money and follow the laws?

 

[thedonkeycentrehalf]

VWFS have a claim form on their website - https://customer.vwfs.co.uk/commission-complaints.html but they do mention the appeal to the Supreme court.

VWFS covers many makes of car - VW, Audi, Seat, Skoda, Porsche and a few others.

 

[dazzer6666]

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.

The FCA have fully investigated..... it's not down to a class action. Clear breach of commission disclosure rules.

 

[Official Old Man]

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.

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.

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]

Or maybe loan money and follow the laws?

there is that, some companies believed they were following the law and seems they might not have been.

 

[Herr Tubthumper]

there is that, some companies believed they were following the law and seems they might not have been.

How was the law miss interpreted? What I have read it seems clear as day that commission should be disclosed?

 

[beorhthelm]

How was the law miss interpreted? What I have read it seems clear as day that commission should be disclosed?

seems they mis-read that the rule for DCA loans applied to all loans.

 

[Harry Wilson's tackle]

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.

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]

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'?

You did. That £107 includes the bit of commission you didn't know about

 

[dazzer6666]

VWFS have a claim form on their website - https://customer.vwfs.co.uk/commission-complaints.html but they do mention the appeal to the Supreme court.

VWFS covers many makes of car - VW, Audi, Seat, Skoda, Porsche and a few others.

Definitely go to the manufacturer direct - do not use one of the claims management companies.

 

[Gazwag]

I filled in the forms a while ago and was told all my PCPs were done correctly when issued so I had no claim

 

[Commander]

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.

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]

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.

.... choose to pay someone a few thousand quid for a less than 5 minute job. No issue but doesn't seem sensible