MoneySavingExpert.com now has 1,080,000 car finance complaint letters submitted since 6 February 2024 when its founder and executive chair Martin Lewis launched its free car finance reclaim tool.
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1,000,000 car finance complaints submitted since MSE’s tool launched on 6 February 2024
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1,000,000 car finance complaints submitted since MSE’s tool launched on 6 February 2024
MSE_Molly_G
Posts: 169 MSE Staff
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Yet, statistically, 600k of them will be rejected as there was no DCA on the agreement and potentially, 100% will be rejected if the FCA decides that selling rules shouldn't be applied retrospectively. All MSE have done is create a huge load of costs for sellers that they will pass onto customers buying a car in future - on the basis of a speculative complaint that we don't even know was wrong. MSE should be telling people to wait until the review and save us all money - not very MSE to suggest doing something that will drive up the costs of car deals in the future.
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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What happened to people taking personal responsibility for their decisions? Every person who took out one of these loans was told exactly what they would be paying and what the rate of interest would be. If they didn't like it, why didn't they walk away and look elsewhere for another car or another personal loan or both?
It is hardly a novel concept for a car dealer to try to get the maximum amount of cash from a buyer, whether that be in cash, commission, loan rate, extended warranty, service plans, GAP insurance, wheels and tyre cover, paint protection, fabric protection, chip and dent protection and the rest. It is common knowledge among the British public, which is why haggling over a car purchase is almost a national sport.
This wasn't mis-selling, it was mis-buying.
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And almost everyone of them a waste of time until October which will just push up costs which we all end up paying... well done!MSE_Molly_G said:MoneySavingExpert.com now has 1,080,000 car finance complaint letters submitted since 6 February 2024 when its founder and executive chair Martin Lewis launched its free car finance reclaim tool.
Read the full story:
1,000,000 car finance complaints submitted since MSE’s tool launched on 6 February 2024
If you haven't already, join the forum to reply.Laura_Norder said:What happened to people taking personal responsibility for their decisions? Every person who took out one of these loans was told exactly what they would be paying and what the rate of interest would be. If they didn't like it, why didn't they walk away and look elsewhere for another car or another personal loan or both?
It is hardly a novel concept for a car dealer to try to get the maximum amount of cash from a buyer, whether that be in cash, commission, loan rate, extended warranty, service plans, GAP insurance, wheels and tyre cover, paint protection, fabric protection, chip and dent protection and the rest. It is common knowledge among the British public, which is why haggling over a car purchase is almost a national sport.
This wasn't mis-selling, it was mis-buying.
Welcome to regulated industries and a country where generally it's considered consumers require statutory protections from big business. Probably not the best list of examples given GAP insurance is also about to be shut down as the FCA investigates it as a terrible value product.
Normally I am fully on the side of mis-buying -v- mis-selling however on this particular topic I suspect there were lies involved in the sales patter too... "Bad Credit Bank have said they can do it for 12.9% APR" when actually the bank said they'd do it for 10% but we can go halves on anything above you managed to get them to agree to. Loans, and banking in general, tends to be one area where its take it or leave it in nature, you can't normally apply for an AmEx Platinum at 704.6% and after they say your accepted say actually you'll only take if if they do it for 699.9%1 -
Actually with this one, DCA was miss-selling in that the person could be misled that they only qualified for a certain, more expensive, rate when they should have got better rates - plenty couldn't get better rates or were desperate.Laura_Norder said:What happened to people taking personal responsibility for their decisions? Every person who took out one of these loans was told exactly what they would be paying and what the rate of interest would be. If they didn't like it, why didn't they walk away and look elsewhere for another car or another personal loan or both?
It is hardly a novel concept for a car dealer to try to get the maximum amount of cash from a buyer, whether that be in cash, commission, loan rate, extended warranty, service plans, GAP insurance, wheels and tyre cover, paint protection, fabric protection, chip and dent protection and the rest. It is common knowledge among the British public, which is why haggling over a car purchase is almost a national sport.
This wasn't mis-selling, it was mis-buying.
The problem here is ML and MSE telling everyone who had finance to send in complaints despite the fact we know only around 40% of sales were affected and of them, not all were inflated. That is why ML/MSE should be telling people that this exists and that they should wait until October before sending in any complaints, indeed, FCA might force all dealers of people affected to proactively contact buyers.
The problem is that ML especially is dangling this nonsense idea that anyone with finance will get a share of £450m redress or something when in reality it might be nobody gets anything, or just a refund of the difference in rates etcSam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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There was one on the radio yesterday that talked about someone on 5% and the dealer got nothing but if they put it through at 14.9% or similar, the dealer would get £1300 for every £10,000 borrowed (can't remember the exact figures)DullGreyGuy said:
And almost everyone of them a waste of time until October which will just push up costs which we all end up paying... well done!MSE_Molly_G said:MoneySavingExpert.com now has 1,080,000 car finance complaint letters submitted since 6 February 2024 when its founder and executive chair Martin Lewis launched its free car finance reclaim tool.
Read the full story:
1,000,000 car finance complaints submitted since MSE’s tool launched on 6 February 2024
If you haven't already, join the forum to reply.Laura_Norder said:What happened to people taking personal responsibility for their decisions? Every person who took out one of these loans was told exactly what they would be paying and what the rate of interest would be. If they didn't like it, why didn't they walk away and look elsewhere for another car or another personal loan or both?
It is hardly a novel concept for a car dealer to try to get the maximum amount of cash from a buyer, whether that be in cash, commission, loan rate, extended warranty, service plans, GAP insurance, wheels and tyre cover, paint protection, fabric protection, chip and dent protection and the rest. It is common knowledge among the British public, which is why haggling over a car purchase is almost a national sport.
This wasn't mis-selling, it was mis-buying.
Welcome to regulated industries and a country where generally it's considered consumers require statutory protections from big business. Probably not the best list of examples given GAP insurance is also about to be shut down as the FCA investigates it as a terrible value product.
Normally I am fully on the side of mis-buying -v- mis-selling however on this particular topic I suspect there were lies involved in the sales patter too... "Bad Credit Bank have said they can do it for 12.9% APR" when actually the bank said they'd do it for 10% but we can go halves on anything above you managed to get them to agree to. Loans, and banking in general, tends to be one area where its take it or leave it in nature, you can't normally apply for an AmEx Platinum at 704.6% and after they say your accepted say actually you'll only take if if they do it for 699.9%Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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I'd be surprised if it was that much, assuming a 3 year loan the difference in loan would be £1,527 but thats not considering the net present value of the money, that some settle early so dont pay all the interest nor that some default on the loan so dont pay all the finance or interest etc. The lender would be onto a losser if they were giving away that percentage.Nasqueron said:
There was one on the radio yesterday that talked about someone on 5% and the dealer got nothing but if they put it through at 14.9% or similar, the dealer would get £1300 for every £10,000 borrowed (can't remember the exact figures)DullGreyGuy said:
And almost everyone of them a waste of time until October which will just push up costs which we all end up paying... well done!MSE_Molly_G said:MoneySavingExpert.com now has 1,080,000 car finance complaint letters submitted since 6 February 2024 when its founder and executive chair Martin Lewis launched its free car finance reclaim tool.
Read the full story:
1,000,000 car finance complaints submitted since MSE’s tool launched on 6 February 2024
If you haven't already, join the forum to reply.Laura_Norder said:What happened to people taking personal responsibility for their decisions? Every person who took out one of these loans was told exactly what they would be paying and what the rate of interest would be. If they didn't like it, why didn't they walk away and look elsewhere for another car or another personal loan or both?
It is hardly a novel concept for a car dealer to try to get the maximum amount of cash from a buyer, whether that be in cash, commission, loan rate, extended warranty, service plans, GAP insurance, wheels and tyre cover, paint protection, fabric protection, chip and dent protection and the rest. It is common knowledge among the British public, which is why haggling over a car purchase is almost a national sport.
This wasn't mis-selling, it was mis-buying.
Welcome to regulated industries and a country where generally it's considered consumers require statutory protections from big business. Probably not the best list of examples given GAP insurance is also about to be shut down as the FCA investigates it as a terrible value product.
Normally I am fully on the side of mis-buying -v- mis-selling however on this particular topic I suspect there were lies involved in the sales patter too... "Bad Credit Bank have said they can do it for 12.9% APR" when actually the bank said they'd do it for 10% but we can go halves on anything above you managed to get them to agree to. Loans, and banking in general, tends to be one area where its take it or leave it in nature, you can't normally apply for an AmEx Platinum at 704.6% and after they say your accepted say actually you'll only take if if they do it for 699.9%
When I dealt with dealerships, who were lazy and wanted their finance and insurance from one company, we bought an insurance policy wholesale at £50, sold it to the dealership for £100 and the dealership sold it on for £200-£300
5% would also be a fairly prime customer no matter when this loan was taken so equally surprising they'd have considered accepting a getting towards sub-prime 15% unless they were exceptionally naive of current interest rates and more of a back street garage aimed at the sub prime where this may have been the rates advertised. Lots of dealerships make a big thing of their representative APRs so the person would have seen it was 1,000 bps above0 -
People who are 'desperate' for a loan are usually a higher lending risk and therefore pay more. Those are the rules of lending and borrowing and always will be. If they 'couldn't get better rates', what does that tell you about their risk profile as a borrower?Nasqueron said:
Actually with this one, DCA was miss-selling in that the person could be misled that they only qualified for a certain, more expensive, rate when they should have got better rates - plenty couldn't get better rates or were desperate.Laura_Norder said:What happened to people taking personal responsibility for their decisions? Every person who took out one of these loans was told exactly what they would be paying and what the rate of interest would be. If they didn't like it, why didn't they walk away and look elsewhere for another car or another personal loan or both?
It is hardly a novel concept for a car dealer to try to get the maximum amount of cash from a buyer, whether that be in cash, commission, loan rate, extended warranty, service plans, GAP insurance, wheels and tyre cover, paint protection, fabric protection, chip and dent protection and the rest. It is common knowledge among the British public, which is why haggling over a car purchase is almost a national sport.
This wasn't mis-selling, it was mis-buying.
I suspect most of those who chose this sort of financing were not particularly desperate and didn't really care what the bottom line was (even though the figures were there in black and white for them to see). If they believed they could meet the monthly payment, they went away happy.1 -
YupLaura_Norder said:
People who are 'desperate' for a loan are usually a higher lending risk and therefore pay more. Those are the rules of lending and borrowing and always will be. If they 'couldn't get better rates', what does that tell you about their risk profile as a borrower?Nasqueron said:
Actually with this one, DCA was miss-selling in that the person could be misled that they only qualified for a certain, more expensive, rate when they should have got better rates - plenty couldn't get better rates or were desperate.Laura_Norder said:What happened to people taking personal responsibility for their decisions? Every person who took out one of these loans was told exactly what they would be paying and what the rate of interest would be. If they didn't like it, why didn't they walk away and look elsewhere for another car or another personal loan or both?
It is hardly a novel concept for a car dealer to try to get the maximum amount of cash from a buyer, whether that be in cash, commission, loan rate, extended warranty, service plans, GAP insurance, wheels and tyre cover, paint protection, fabric protection, chip and dent protection and the rest. It is common knowledge among the British public, which is why haggling over a car purchase is almost a national sport.
This wasn't mis-selling, it was mis-buying.
I suspect most of those who chose this sort of financing were not particularly desperate and didn't really care what the bottom line was (even though the figures were there in black and white for them to see). If they believed they could meet the monthly payment, they went away happy.
Must have shiny new thing, insert latest mobile phone or "prestige marque" car or all inclusive holiday in Maldives or the expensive wedding or some or other latest gadget. All are affordable on the monthly rate that never ends!
See here for basic advice:One of the big problems is that people ask the wrong questions. Too many ask:The root cause of many of these problems is financial illiteracy compounded and aggravated by a wholesale lack of engagement.
- How do I get the shiny new car/glamorous holiday/amazing Christmas/designer clothes I want on my paltry salary?
It's thinking this way that leads people to overspend, because they ignore the financial reality. The real question is:
- On my paltry salary, what’s the best lifestyle I can possibly have?
You have to start letting your finances rule your lifestyle, not vice versa.
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I'm not in favour of any on these add-ons. I've always rejected them myself. That is rather the point though. It is incumbent on the customer to say "No thanks" and walk away, if they're unhappy with any aspect of the deal, including the APR they're being offered.DullGreyGuy said:Laura_Norder said:What happened to people taking personal responsibility for their decisions? Every person who took out one of these loans was told exactly what they would be paying and what the rate of interest would be. If they didn't like it, why didn't they walk away and look elsewhere for another car or another personal loan or both?
It is hardly a novel concept for a car dealer to try to get the maximum amount of cash from a buyer, whether that be in cash, commission, loan rate, extended warranty, service plans, GAP insurance, wheels and tyre cover, paint protection, fabric protection, chip and dent protection and the rest. It is common knowledge among the British public, which is why haggling over a car purchase is almost a national sport.
This wasn't mis-selling, it was mis-buying.
Welcome to regulated industries and a country where generally it's considered consumers require statutory protections from big business. Probably not the best list of examples given GAP insurance is also about to be shut down as the FCA investigates it as a terrible value product.
Normally I am fully on the side of mis-buying -v- mis-selling however on this particular topic I suspect there were lies involved in the sales patter too... "Bad Credit Bank have said they can do it for 12.9% APR" when actually the bank said they'd do it for 10% but we can go halves on anything above you managed to get them to agree to. Loans, and banking in general, tends to be one area where its take it or leave it in nature, you can't normally apply for an AmEx Platinum at 704.6% and after they say your accepted say actually you'll only take if if they do it for 699.9%
Whatever next? The salesman failed to inform me that part of my car finance repayment will go towards hiking his CEO's package next year. This clearly created a conflict of interest, so I'm going to claim mis-selling?0 -
anyone had car finance with MONEYWAY?0
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