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

motorguy

Nearlyold said:

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

Dealers are NOT repeat NOT NOT NOT free to set the interest rate.  They are brokers not lenders.

motorguy

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

If you dont know what you're complaining about, what are you claiming for?

motorguy

Caroash said:

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

What are you claiming for?

Nearlyold

motorguy said:

Nearlyold said:

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

Dealers are NOT repeat NOT NOT NOT free to set the interest rate.  They are brokers not lenders.

They were absolutely free to set the interest rate.

Prior to the change in rules in 2021 I worked in F&I Compliance for a major car dealer. Finance companies were very keen to get our business and would offer us a competitive "base interest rate"  in order  to encourage us to use them for used car sales.

On used car deals  we were able to set a discretionary margin within agreed parameters over the base rate which would of course be reflected in the APR and commision .

As an aside Business Managers were also able to offer more or less the base rate to customers if there was a business need to do so for a particular customer -so called "Deal Saver" Rates were strictly monitored by  management for over use as BMs were only meant to use it when absolutely necessary (BMs were expected  to be able to "sell" the higher rates)

See here

https://www.freeths.co.uk/2024/01/19/fca-announces-work-on-motor-finance-section-166-report-and-changes-to-the-complaints-process/#:~:text=Broadly, DCAs were arrangements where,rate charged to the customer.

The lenders system may not have had a button marked "Increase APR" the button might have been marked "Select Commision" but it amounts to the same thing.

Ganga

I bought my car for cash back in June ,can i  claim off myself ?   

Nearlyold

Ganga Yes and you can also claim off yourself the interest you would have got from the money you spent on the car if you'd left it in a deposit account and not bought the car. However you would have to sell the car to fund the compo.

Money_Grabber13579

Does anyone ever actually get anything from these types of investigations or are they just headline grabbing stories which make people go chasing a false hope? I think of the reports that iPhone customers could get payments for their phones being slowed down and Mastercard users could get payments for having charged excessive transaction costs - I’ve never received anything and don’t really expect to either!

LightFlare

There must be something in the announcement by Martin -- or are people saying that there is absolutely no substance to this and he's totally wrong and just headline grabbing ?

people asking genuine questions of if they may be eligible or how to set up a complaint/query -- yet the stock response seems to be "nothing to see - move along"

I'm confused

Griffindog

Money_Grabber13579 said:

Does anyone ever actually get anything from these types of investigations or are they just headline grabbing stories which make people go chasing a false hope? I think of the reports that iPhone customers could get payments for their phones being slowed down and Mastercard users could get payments for having charged excessive transaction costs - I’ve never received anything and don’t really expect to either!

Lots of people benefitted from the PPI claims - me included and also missold endowment mortgages.

Nearlyold

LightFlare said:

There must be something in the announcement by Martin -- or are people saying that there is absolutely no substance to this and he's totally wrong and just headline grabbing ?

people asking genuine questions of if they may be eligible or how to set up a complaint/query -- yet the stock response seems to be "nothing to see - move along"

I'm confused

The sharp comments tend to be in response to the "I bought a car how do I claim?" type posts.