Unlike PPI which was an extra product deceptively sold, car finance can be easily compared at the point of sale. If dealers can't make money from finance won't they just increase the sticker price? I get it's better to be transparent to the customer, but were they to retrospectively void all non disclosed commissions other than DCA it seems a bit OTT. Happy days for everyone who has had car finance though.
I'm 99% convinced that I didn't have a discretionary interest rate since one loan was at 0%, and another at 3.9% (so both much lower than examples quoted elsewhere). Equally, I simply assumed that the dealer would be earning some commission on the deal, so apart from the 'free money' aspect of a claim I don't feel that I was inconvenienced in any way (i.e. only morally entitled to a small amount, if anything). If the powers that be take that approach, we're back to the original view that big money would only be paid to the 40% with discretionary rates.
So you got an agreement at 0% and you thought great ! Did the dealer get any commission ? You bet they did as it is hidden in the price of the vehicle. Maybe around £1000-£1500 for them to introduce you to the finance. I would certainly want to know if my monthly payment ALSO included something towards the dealers commission irrespective if it was 0% or not.
Our records show this motor finance agreement was subject to a discretionary commission arrangement model. We have registered a complaint for you Paused until December 2025
Not fair to the industry, going to cause big problems, at the time I don’t think they were breaking the rules and some car dealers were selling cars below cost price and making money on the finance, anybody thinking of starting a business at the moment, don’t bother, go work for the public sector, enterprise is finished in this country
If customers were not made aware that interest rates they were paying were artificially high because a proportion of it consisted of commission being paid to the dealer then that is underhanded and therefore wrong. The whole point of the FCA is to ensure the financial services sector act ethically. After the PPI scandal the financial services sector should have learnt their lessons and been open and honest about how their fees were made up. I’m sorry, but no sympathy from me.
@ it also worked the other way around as well, dealers would charge less interest to the customer to get the deal and subsidies the rate, are the customers going to pay that back, no, dealers would always explain the rate charged and it was up to the customer if they wanted to accept the deal just like when you renew you car insurance or get a quote for a new boiler, some heating engineers will quote £1500 some £2000 is the engineer who quotes £2000 going to give you £500 back a few years later because he charged a different rate?
It’s ridiculous to compare this to obtaining quotes for a boiler. The financial services sector are in a highly regulated industry and must abide by rules set out by the FCA. That means all fees paid by customers must be clear and transparent. If lenders knowingly hide fees within interest rates then they are mis selling their products and breaking rules they have all signed up to. I’m sorry but there is no excuse and they must be held accountable.
@ that is what is said now after the ruling, before there was nothing before that said they had to charge the base rate of the finance company, if the rules change it should be from the point at which it changes, that is only fair to all parties
@@carlyboy888bradford3 It’s always been part of the rules that fees should be clear and transparent but some companies will always try to get around them and push the boundaries. Pleading ignorance is no defence.
I don’t understand why this is a scandal. Does my credit card supplier owe me money if another was offering a lower rate even I though I didn’t go with it?
So I received 2 letters from BMW Finance today stating: we can confirm that a fixed commission was paid to the retail at the interest rate on your agreement was set by us not the retailer therefore we can reassure that the fixed commission had no impact on your interest rate we will treat the inquiry relation to the above agreement as closed - so where do I stand now?
In had the same email can anyone reply to our position with bmw finance as they say the case has been closed have the jumped the gun on their decision any help would be great can this be passed into Martin Lewis
Who do we complain to? And how
Unlike PPI which was an extra product deceptively sold, car finance can be easily compared at the point of sale. If dealers can't make money from finance won't they just increase the sticker price? I get it's better to be transparent to the customer, but were they to retrospectively void all non disclosed commissions other than DCA it seems a bit OTT. Happy days for everyone who has had car finance though.
Martin Lewis for economy commisioner!!!
I'm 99% convinced that I didn't have a discretionary interest rate since one loan was at 0%, and another at 3.9% (so both much lower than examples quoted elsewhere). Equally, I simply assumed that the dealer would be earning some commission on the deal, so apart from the 'free money' aspect of a claim I don't feel that I was inconvenienced in any way (i.e. only morally entitled to a small amount, if anything).
If the powers that be take that approach, we're back to the original view that big money would only be paid to the 40% with discretionary rates.
So you got an agreement at 0% and you thought great ! Did the dealer get any commission ? You bet they did as it is hidden in the price of the vehicle. Maybe around £1000-£1500 for them to introduce you to the finance. I would certainly want to know if my monthly payment ALSO included something towards the dealers commission irrespective if it was 0% or not.
Put in a complaint already
So how long should we be waiting for a response from the companies? And if we have no response what should we do? 🤔
yes same who do we complain to ??
It should be no different than mortgages, they’ve been transparent for years now…
Show me the money
Wohooo!!!! Needs some extra cash!!😂😂
Our records show this motor finance agreement was subject to a discretionary commission arrangement model.
We have registered a complaint for you
Paused until December 2025
Not fair to the industry, going to cause big problems, at the time I don’t think they were breaking the rules and some car dealers were selling cars below cost price and making money on the finance, anybody thinking of starting a business at the moment, don’t bother, go work for the public sector, enterprise is finished in this country
If customers were not made aware that interest rates they were paying were artificially high because a proportion of it consisted of commission being paid to the dealer then that is underhanded and therefore wrong. The whole point of the FCA is to ensure the financial services sector act ethically. After the PPI scandal the financial services sector should have learnt their lessons and been open and honest about how their fees were made up. I’m sorry, but no sympathy from me.
@ it also worked the other way around as well, dealers would charge less interest to the customer to get the deal and subsidies the rate, are the customers going to pay that back, no, dealers would always explain the rate charged and it was up to the customer if they wanted to accept the deal just like when you renew you car insurance or get a quote for a new boiler, some heating engineers will quote £1500 some £2000 is the engineer who quotes £2000 going to give you £500 back a few years later because he charged a different rate?
It’s ridiculous to compare this to obtaining quotes for a boiler. The financial services sector are in a highly regulated industry and must abide by rules set out by the FCA. That means all fees paid by customers must be clear and transparent. If lenders knowingly hide fees within interest rates then they are mis selling their products and breaking rules they have all signed up to. I’m sorry but there is no excuse and they must be held accountable.
@ that is what is said now after the ruling, before there was nothing before that said they had to charge the base rate of the finance company, if the rules change it should be from the point at which it changes, that is only fair to all parties
@@carlyboy888bradford3 It’s always been part of the rules that fees should be clear and transparent but some companies will always try to get around them and push the boundaries. Pleading ignorance is no defence.
I don’t understand why this is a scandal. Does my credit card supplier owe me money if another was offering a lower rate even I though I didn’t go with it?
Who pays for the compensation payments?
Ultimately we do! Banks will pay out huge sums and then we will pay more for mortgages, loans and general banking.
Audi says No...
Black Horse said yes to me!!
Now , how about car insurance company, they need to he punished as i think they have over inflated how much insurance we are paying
So I received 2 letters from BMW Finance today stating: we can confirm that a fixed commission was paid to the retail at the interest rate on your agreement was set by us not the retailer therefore we can reassure that the fixed commission had no impact on your interest rate we will treat the inquiry relation to the above agreement as closed - so where
do I stand now?
In had the same email can anyone reply to our position with bmw finance as they say the case has been closed have the jumped the gun on their decision any help would be great can this be passed into Martin Lewis
😮
So now, the companies with ‘go bust’ and no one will get paid…
Give it a rest Martin, try supporting the industry as well as consumers!
🤡
GB news and TALK are the only news chanels i trust
Why come comment on here then? Surely you know that will boost this video