Millions who bought a car pre-2021 could be due a payout as mis-selling investigation launched

jcb208

Don't worry It will cost you a lot more in the future with new car loans so providers can recoup the costs

Caroash

I had car finance back in 2004 ,was Fiat finance I think through stoneacre. Can I claim this far back?

spinnyharv

Hi All, A quick question. I have contacted the finance company that I brought my car from to ask if it was on a discretionary commission basis. They have replied saying "It was under a discretionary commission arrangement but in this instance the rate was below the base interest rate so the dealer was required to pay a subsidy." Should I still be putting a complaint in because of the fact I didn't know the dealer was responsible for setting my interest rate? And how do I know that they are telling the truth that they had to pay a subsidy?

Burns4589

Brought a new van in 2016 on a hire purchase deal using motonova finance. Is it just car/van on pcp that can claim or can hp claim as well? 

rufus_t

Hi, Thanks for the info. I've had two cars on finance in the past 10 years. One of which I have the paperwork for and one I don't. Not sure where to start. Do I complain to the dealer or the finance provider? What am I actually complaining about - how do I know if I have a legitimate case? How do I go about the one where I don't have the paperwork? Does MSE have (or plan to have) guides and templates? 

Thanks in advance

AC55

rufus_t said:

Hi, Thanks for the info. I've had two cars on finance in the past 10 years. One of which I have the paperwork for and one I don't. Not sure where to start. Do I complain to the dealer or the finance provider? What am I actually complaining about - how do I know if I have a legitimate case? How do I go about the one where I don't have the paperwork? Does MSE have (or plan to have) guides and templates? 

Thanks in advance

MSE are putting guides together for this which are expected in the current weeks according to their website.

In the meantime, I've emailed my old car's finance company to ask them to clarify whether discretionary commission was in place when my car finance offer was presented to me. This won't be apparent within your paperwork anyway. 

Ectophile

spinnyharv said:

Hi All, A quick question. I have contacted the finance company that I brought my car from to ask if it was on a discretionary commission basis. They have replied saying "It was under a discretionary commission arrangement but in this instance the rate was below the base interest rate so the dealer was required to pay a subsidy." Should I still be putting a complaint in because of the fact I didn't know the dealer was responsible for setting my interest rate? And how do I know that they are telling the truth that they had to pay a subsidy?

So are you planning on giving the money back to the dealer, as they took a hit by offering you cheaper finance?

CraigS90

I owned one car back in 2016 but have no paperwork for the vehicle as I currently do not own it and my current car back in 2020. Both were bought on HP not PCP. Is it still worth challenging both companies that I got the cars through as individual cases or pick one and leave the other?

Nearlyold

The issue can be with any form of finance where dealers were free to set the interest rate. Were these new cars or used,? 

motorguy

spinnyharv said:

Hi All, A quick question. I have contacted the finance company that I brought my car from to ask if it was on a discretionary commission basis. They have replied saying "It was under a discretionary commission arrangement but in this instance the rate was below the base interest rate so the dealer was required to pay a subsidy." Should I still be putting a complaint in because of the fact I didn't know the dealer was responsible for setting my interest rate? And how do I know that they are telling the truth that they had to pay a subsidy?

Let it go.  Seriously.

You're not going to get any com-pen-say-shun.

Finance offers on new cars are part funded by the manufacturer and part funded by the dealer in that it comes out of their margin.  

The dealer didnt "set" your loan rate.  You availed of an incentivised rate below the base rate.

Honestly i despair at times.