FCA investigates car finance

Nic60
Nic60 Posts: 18
First Post First Anniversary
Forumite
edited 13 February at 2:58PM in Reclaim car finance
Hi all, this may be a daft question but how do I check what commission the dealer made on our car finance plan, and so check if it was excessive and can be (potentially) reclaimed?
Thanks. 
«1

Comments

  • dunstonh
    dunstonh Posts: 115,720
    Name Dropper First Anniversary Combo Breaker First Post
    Forumite
    Hi all, this may be a daft question but how do I check what commission the dealer made on our car finance plan, and so check if it was excessive and can be (potentially) reclaimed?
    You don't.  There has been no requirement for them to disclose it.   The commission rule changed in 2021.

    As for the rest, you wait and see what the FCA review finds and what their decision is.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Nic60
    Nic60 Posts: 18
    First Post First Anniversary
    Forumite
    Thanks for the reply. 
    So what should I do now, lodge a claim anyway, and who with?
  • Brie
    Brie Posts: 9,323
    Photogenic First Post Name Dropper First Anniversary
    Forumite
    All the details are on the link below from the marvellous Debt Camel website.

    But the crucial bit is the agreement has to be from before the commission rules changed in 2021.  So if you took out finance in 2020, for instance, you can file a claim.

    Car finance commission scandal - can you get a refund? · Debt Camel
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • Nic60
    Nic60 Posts: 18
    First Post First Anniversary
    Forumite
    Brilliant. A huge thank you to you both for your help. 👍
  • Nasqueron
    Nasqueron Posts: 8,379
    Name Dropper First Post First Anniversary Combo Breaker
    Forumite
    I took PCP in 2014 at 0% interest

    Maybe they jacked it up from 0 to 0 to make commission and I could make a claim for £0 :D 
  • hieveryone
    hieveryone Posts: 3,827
    Name Dropper First Post Combo Breaker First Anniversary
    Forumite
    Daft question but do I *need* to include bank statements for car finance claim? I don't have any of the original documentation so was going to give them name, address, date of purchase etc. 

    Also do I send to the dealership? 

    Thanks


    Bought is to buy. Brought is to bring.
  • Nasqueron
    Nasqueron Posts: 8,379
    Name Dropper First Post First Anniversary Combo Breaker
    Forumite
    edited 17 January at 9:50AM
    Daft question but do I *need* to include bank statements for car finance claim? I don't have any of the original documentation so was going to give them name, address, date of purchase etc. 

    Also do I send to the dealership? 

    Thanks
    Given you need to prove that your % was jacked up for commission purposes, it would not be necessary to show details of what you paid - just basic details to find your account

    You send your details to whoever sold you finance and then gather evidence that shows they gave you a higher rate to get more commission
  • dunstonh
    dunstonh Posts: 115,720
    Name Dropper First Anniversary Combo Breaker First Post
    Forumite
    edited 17 January at 10:58AM
    Re FCA PS24/1

    The FCA have announced a pause, for a 37 week period (approximately 9 months) between 11 January and 25 September 2024, the requirement on firms to provide a final response to a complaint about motor finance agreements with discretionary commission arrangements (DCAs) within 8 weeks of receiving the complaint - This will mean, unless the firm decides to respond to a complaint, consumers will not be able to refer their complaint to the Financial Ombudsman during the pause. Once the pause ends, the 8-week time limit will be reinstated and, unless the FCA take further action, consumers will be able to refer complaints to the Financial Ombudsman again.

    The pause to the 8 week rule will apply to complaints received by firms on or after 17 November 2023 (as these complaints would be less than 8 weeks old when the rules took effect) and on or before 25 September 2024. For complaints received during the period the pause is in place the 8 weeks will start to run from 26 September 2024.

     The FCA are also undertaking work in the motor finance sector with a skilled person to determine the best way forward.


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bernip
    bernip Posts: 1
    First Post
    Newbie
    In relation to any claim against a finance company, what if you can’t remember which company the finance was taken out through? Would I have to go to the dealership and ask them to provide me with the information? 
    I have had a number of vehicles on PCP and HP I can’t remember which companies provided the finance. 
  • dunstonh
    dunstonh Posts: 115,720
    Name Dropper First Anniversary Combo Breaker First Post
    Forumite
    In relation to any claim against a finance company, what if you can’t remember which company the finance was taken out through? Would I have to go to the dealership and ask them to provide me with the information? 
    Yes
    However, as noted, the FCA has suspended complaints regarding this issue whilst they decide on how it should be dealt with.    Rumours are that the FCA is looking into whether firms that did it may have to pro-actively contact people to avoid the firms that didn't do it facing a load of spurious complaints.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 234K Work, Benefits & Business
  • 606.1K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards