Claiming finance commission back.

mojo198

I have been told by Kia that there was a commission based agreement on a car finance I had. There is nothing in my paperwork to tell me I was paying commission so I believe these fees were hidden from me.

In placing a claim for this... Am I placing a claim with the dealership or should it be placed directly with the finance company?

Thanks.

Mark_d

To me this means that the Kia dealers receive a commission based on selling you the car finance agreement.  This might explain why there is no mention of it in your paperwork.

motorguy

mojo198 said:

I have been told by Kia that there was a commission based agreement on a car finance I had. There is nothing in my paperwork to tell me I was paying commission so I believe these fees were hidden from me.

In placing a claim for this... Am I placing a claim with the dealership or should it be placed directly with the finance company?

Thanks.

You werent paying commission.  The finance company was.

DullGreyGuy

mojo198 said:

I have been told by Kia that there was a commission based agreement on a car finance I had. There is nothing in my paperwork to tell me I was paying commission so I believe these fees were hidden from me.

In placing a claim for this... Am I placing a claim with the dealership or should it be placed directly with the finance company?

Thanks.

It's perfectly normal for commission to be hidden... last time you bought a big item in a shop did you get to know how much commission the seller received? FCA states that 95% of car loans involve commission. 

The issue that you may not have fully understood is for loans taken out between 2014 and 2020 where the dealer got more commission if they offered you a higher APR than if they offered you a lower APR that the lender would have also been happy to do. This created a conflict of interest which should have been declared. For you to have a valid complaint you need to show they offered you a higher APR in exchange for additional commission. 

Andysibbo

With regards to the issue of commission being paid on car finance deals, does the same apply to finance deals on caravans where it may have been paid?

Nasqueron

Andysibbo said:

With regards to the issue of commission being paid on car finance deals, does the same apply to finance deals on caravans where it may have been paid?

Again to be clear, there is no problem with commission, having it on the sale is perfectly fine. The only issue in this case, was a claim that some dealers deliberately gave you a higher APR on the finance in order to get more commission. As such, can you prove this was the case with a caravan sale?

Car_54

Nasqueron said:

Andysibbo said:

With regards to the issue of commission being paid on car finance deals, does the same apply to finance deals on caravans where it may have been paid?

Again to be clear, there is no problem with commission, having it on the sale is perfectly fine. The only issue in this case, was a claim that some dealers deliberately gave you a higher APR on the finance in order to get more commission. As such, can you prove this was the case with a caravan sale?

And if there is any claim, surely it would be for the excessive interest paid, and not for the commission (which he didn't pay)?

Nasqueron

Car_54 said:

Nasqueron said:

Andysibbo said:

With regards to the issue of commission being paid on car finance deals, does the same apply to finance deals on caravans where it may have been paid?

Again to be clear, there is no problem with commission, having it on the sale is perfectly fine. The only issue in this case, was a claim that some dealers deliberately gave you a higher APR on the finance in order to get more commission. As such, can you prove this was the case with a caravan sale?

And if there is any claim, surely it would be for the excessive interest paid, and not for the commission (which he didn't pay)?

That I don't know - it's with the FCA at the moment for review

DullGreyGuy

Car_54 said:

Nasqueron said:

Andysibbo said:

With regards to the issue of commission being paid on car finance deals, does the same apply to finance deals on caravans where it may have been paid?

Again to be clear, there is no problem with commission, having it on the sale is perfectly fine. The only issue in this case, was a claim that some dealers deliberately gave you a higher APR on the finance in order to get more commission. As such, can you prove this was the case with a caravan sale?

And if there is any claim, surely it would be for the excessive interest paid, and not for the commission (which he didn't pay)?

Would seem logical that if the finance company offered you 10% interest but the sales guy got you to agree to 11% interest with him and the bank splitting it 50/50 that your loss is the impact of the delta in interest rate.