[Finance] Motor Finance Mis-selling

[Herr Tubthumper]

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

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

I guess the appeal will tell. I find it hard to believe they could mis-read such a law?

 

[dazzer6666]

This is useful

Car finance complaints

If you’ve used car finance, you may be owed compensation. Find out how to complain and what to expect. First published: 11/01/2024 Last updated: 11/03/2025 See all updates

www.fca.org.uk

 

[Official Old Man]

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

You didn't know about the commission, but the price didn't change.
"£5000 car, yes sir, that's £107 month, thank you"
It wasn't "£5000 car, yes sir, that's £105 month, thank you" and then they add £2 on top without telling you.
No one lied about how much it was going to cost the buyer. When the buyer signed the paperwork it would have stated £107 and £107 was what they paid.
Where is the con? No mis-selling or added hidden fees. They just didn't say that the seller gets commission (which I know is illegal/against the rules).

 

[dazzer6666]

You didn't know about the commission, but the price didn't change.
"£5000 car, yes sir, that's £107 month, thank you"
It wasn't "£5000 car, yes sir, that's £105 month, thank you" and then they add £2 on top without telling you.
No one lied about how much it was going to cost the buyer. When the buyer signed the paperwork it would have stated £107 and £107 was what they paid.
Where is the con? No mis-selling or added hidden fees. They just didn't say that the seller gets commission (which I know is illegal/against the rules).

The price was inflated to start with
Most people just want the car, and don't take much notice. PPI was much the same (although worse given the implied approval reliant on taking the insurance in many cases)

 

[beorhthelm]

The price was inflated to start with
Most people just want the car, and don't take much notice. PPI was much the same (although worse given the implied approval reliant on taking the insurance in many cases)

sure it's inflated. everything is built into a price, like the cost of using debit/credit cards is in price at the supermarket or pub. whats being said is the consumer must explicitly drawn attention to the commissions in case of car loans, so that it is agreed with full informed constent.

be interesting if they go look at other consumer loans for similar, why car loans singled out*. also are the compo agents showing their commission rates?

* presumably they focused on car loans because of the prevalence of DCA where there was or could be shady commission influence on deals being offered.

 

[Weststander]

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.

Don’t they all take 40%?

Follow the MSE route instead.

 

[Official Old Man]

The price was inflated to start with
Most people just want the car, and don't take much notice. PPI was much the same (although worse given the implied approval reliant on taking the insurance in many cases)

sure it's inflated. everything is built into a price, like the cost of using debit/credit cards is in price at the supermarket or pub. whats being said is the consumer must explicitly drawn attention to the commissions in case of car loans, so that it is agreed with full informed constent.

be interesting if they go look at other consumer loans for similar, why car loans singled out*. also are the compo agents showing their commission rates?

* presumably they focused on car loans because of the prevalence of DCA where there was or could be shady commission influence on deals being offered.

But you're all saying the same thing. The final price was inflated etc.
Yes, I get that. Interest rate may be 10% but the price you pay is 10% plus the commission.
But who sits down with a laptop and works out what the final price should be, you'd be a Dullard to do that!
Fact is the seller quotes you a monthly fee and that's what you agree on. Nothing is 'hidden', just not declared.
Again I say that no-one has been conned out of money. At no point was anyone asked to pay extra above the agreed price. So where is the con?

 

[WATFORD zero]

But you're all saying the same thing. The final price was inflated etc.
Yes, I get that. Interest rate may be 10% but the price you pay is 10% plus the commission.
But who sits down with a laptop and works out what the final price should be, you'd be a Dullard to do that!
Fact is the seller quotes you a monthly fee and that's what you agree on. Nothing is 'hidden', just not declared.
Again I say that no-one has been conned out of money. At no point was anyone asked to pay extra above the agreed price. So where is the con?

I have to say, I can see your point. You're taking out a loan to buy something and agree the repayment schedule. It's a bit like me agreeing and buying something for £100 and then going back saying "I didn't realise you had put 25% mark up on that, it's too much and I want 5% back"