Response from car finance people telling me they had commission but it wasn't 'discretionary'!

pgibbyuk1

Hi, what do you make of this, regarding the discretionary commission on vehicle finance that my provider has sent to me:

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We have now reviewed your agreement in detail and can confirm that your lender 247 Money did not operate a discretionary commission arrangement at the time you took out finance on vehicle

Please note, your finance started with 247 Money on the 30 September 2021.

Therefore, we can confirm that all information relating to the finance agreement was provided to you in accordance with our regulatory obligations.

Whilst we did receive a commission from the lender, this was not discretionary and therefore did not impact the interest rate on your agreement. 

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I would appreciate any views on this and is it worth me pursuing it? 

Thanks

Brie

According to DebtCamel discretionary commission was banned from January 2021 so wouldn't have applied when you took out the finance with 247.  

more details here....
Car finance commission scandal - can you get a refund? · Debt Camel

dunstonh

Hi, what do you make of this, regarding the discretionary commission on vehicle finance that my provider has sent to me:
-------------------------------------------------------

We have now reviewed your agreement in detail and can confirm that your lender 247 Money did not operate a discretionary commission arrangement at the time you took out finance on vehicle

Please note, your finance started with 247 Money on the 30 September 2021.
<snip>
I would appreciate any views on this and is it worth me pursuing it? 

What is it you are trying to pursue?

Commission is allowed.  Discretionary increases are not, and your finance agreement is after the ban on discretionary.   There is nothing wrong here.

DullGreyGuy

pgibbyuk1 said:

Hi, what do you make of this, regarding the discretionary commission on vehicle finance that my provider has sent to me:

-------------------------------------------------------

We have now reviewed your agreement in detail and can confirm that your lender 247 Money did not operate a discretionary commission arrangement at the time you took out finance on vehicle

Please note, your finance started with 247 Money on the 30 September 2021.

Therefore, we can confirm that all information relating to the finance agreement was provided to you in accordance with our regulatory obligations.

Whilst we did receive a commission from the lender, this was not discretionary and therefore did not impact the interest rate on your agreement. 

-------------------------------------------------------

I would appreciate any views on this and is it worth me pursuing it? 

Thanks

Pursuing what?

There is nothing wrong with commissions in principle, there was a conflict of interest where the sales guy would get higher commission for giving you a higher APR than the lender was prepared to offer and so it had to be declared. That practice was outlawed before your loan was taken out. Your loan didn't break the rules. 

Dionyssia

My husband and I bought a second-hand car in 2017 with Motonovo Finance.  The interest rate was 9.5%.  I sent them an email on the night Martin first discussed this and after 28 days had heard nothing.  I sent them another email and a couple of days ago, received the following:

Discretionary Commission Arrangement

Hello,

Thank you for contacting us to find out if your Motor Finance Agreements had a discretionary commission arrangement. After an initial investigation we have concluded that your agreement(s) (12954521) for vehicle(s) (YR64FKZ) did not involve a discretionary commission arrangement. We have now closed this enquiry.

Quite frankly, I don't believe them.  Do you think this is worth pursuing with The Financial Ombudsman?

Thank you for your response.

BoGoF

No, unless you have time to waste.

Nearlyold

What evidence do you have that there was a discretionary commission agreement in place?  

dunstonh

Quite frankly, I don't believe them.  Do you think this is worth pursuing with The Financial Ombudsman?

Quite frankly, I don't see why you wouldn't believe them.     Most dealers didn't use DCA.

You don't have access to the FOS.  All complaints about DCA are suspended.   Plus, what evidence do you have to present the FOS to support your allegation that Motonovo  are committing fraud?

Rhubarbium

On the latest podcast Martin stated that if I company said you didn’t have a DCA he’d believe them as the consequences if the regulator found them to be lying would be serious.

Nasqueron

Dionyssia said:

My husband and I bought a second-hand car in 2017 with Motonovo Finance.  The interest rate was 9.5%.  I sent them an email on the night Martin first discussed this and after 28 days had heard nothing.  I sent them another email and a couple of days ago, received the following:

Discretionary Commission Arrangement

Hello,

Thank you for contacting us to find out if your Motor Finance Agreements had a discretionary commission arrangement. After an initial investigation we have concluded that your agreement(s) (12954521) for vehicle(s) (YR64FKZ) did not involve a discretionary commission arrangement. We have now closed this enquiry.

Quite frankly, I don't believe them.  Do you think this is worth pursuing with The Financial Ombudsman?

Thank you for your response.

The FOS will ask them if they used DCA, they will confirm not, the case will be closed and you will simply have delayed another person with a legitimate complaint. If you don't believe them, present your evidence. Most people didn't have DCA, it's not unlikely you fall into that camp.

Sorry if you were expecting a payday but MSE loves to go all in with headlines about people getting squillions of pounds back without checking the facts