Motor Finance Commission - The Undisclosed Truth
In 2017 the FCA announced that they would be reviewing the lending processes surrounding the world of Motor Vehicle Finance, and you will not believe what they discovered.
"We identified concerns over the widespread use of commission models that link the broker’s commission to the customer’s interest rate under the finance agreement and allow brokers wide discretion to set or adjust that rate" - FCA - Motor finance discretionary commission models and consumer credit commission disclosure – feedback on CP19/28 and final rules.
This meant that some Brokers/Dealerships were getting paid more commission depending on the level of APR their customer was being charged. Some could also set their customer's APR and thus set their commission levels.
Of course, their customers had no idea this was going on. However, they should have done as this should have been disclosed under a set of guidelines produced by the FCA called "CONC" (Consumer Credit sourcebook).
How to find out if you've been affected?
If your Finance agreement was more than 5.8% APR, then there is a chance that this has happened to you. These rules cover any vehicle purchased in the last 12 years and must have been purchased more than two years ago.
You may not need the help of a Claims Management Company or a Solicitor to help you claim back your money, but in our experience, the Finance companies do not make it straightforward.
We pride ourselves on doing the most for our clients, and if you would like to inquire about how we can help, please use the form below to contact us.
Riteway Claims Limited, trading name Riteway Claims is a claim management company authorised and regulated by the Financial Conduct Authority FRN (941650). You can check our authorisation on the FCA Financial Services Register by visiting the following website: https://register.fca.org.uk. We are Registered in England and Wales under company number (10703533).