Car finance - discretionary commission arrangement claims

kneevis_l95

Hi,

I was told that I had to take out a number of additional products in order to qualify for 0% finance, these being an extended warranty, paint protection and a cosmetic maintenance plan. Reviewing my finance agreement there is nothing in there which states that the APR is contingent on having the products, it was something I was told at PoS and therefore accepted in order to avail of the 0% offer. Looked at the "mis-sold car finance page" on here and note: "If it implies that you have to take its policy, or doesn't tell you about your other options, you can argue you were mis-sold the policy."

Appreciate the fact that commercially the dealership/finance company are using these additional services to make money given they aren't making anything from the finance being on 0%, just wondered if I have a possible claim here?
For reference, the dealership is Stoneacre and the finance company is FCA automotive. Any advice is appreciated!

DullGreyGuy

When was this?

dunstonh

I was told that I had to take out a number of additional products in order to qualify for 0% finance, these being an extended warranty, paint protection and a cosmetic maintenance plan. Reviewing my finance agreement there is nothing in there which states that the APR is contingent on having the products, it was something I was told at PoS and therefore accepted in order to avail of the 0% offer. Looked at the "mis-sold car finance page" on here and note: "If it implies that you have to take its policy, or doesn't tell you about your other options, you can argue you were mis-sold the policy."

These types of complaints are pretty impossible to prove.  What evidence do you have available to support your claim that you were told this?

Nasqueron

kneevis_l95 said:

Hi,

I was told that I had to take out a number of additional products in order to qualify for 0% finance, these being an extended warranty, paint protection and a cosmetic maintenance plan. Reviewing my finance agreement there is nothing in there which states that the APR is contingent on having the products, it was something I was told at PoS and therefore accepted in order to avail of the 0% offer. Looked at the "mis-sold car finance page" on here and note: "If it implies that you have to take its policy, or doesn't tell you about your other options, you can argue you were mis-sold the policy."

Appreciate the fact that commercially the dealership/finance company are using these additional services to make money given they aren't making anything from the finance being on 0%, just wondered if I have a possible claim here?
For reference, the dealership is Stoneacre and the finance company is FCA automotive. Any advice is appreciated!

This is nothing to do with DCA - it's completely separate, however, you are certainly free to complain though depending on when the product was taken out it could be time barred (6 years from point of sale, 3 years from when you knew, or could reasonably have known, there was cause for complaint - arguable when that would be, possibly even after the first letter came out). Do note you have to prove you were told this and explain why you didn't question it before you signed the Ts & Cs

[Deleted User]

These complaints can be decided by the FOS based on the credibility of your recollections alone. Evidence helps ofc but I disagree they are nearly impossible to prove. As an avid reader of published Ombudsman decisions (I do get out sometimes) they will and do make decisions based on the detail and credibility of consumer recollections. If you feel aggrieved, complain to Stonacre, if they fail to give you a satisfactory outcome, go to the FOS. It’s what they’re there for! It is a complaint for mis-sale if you feel you we’re coerced into taking things you didn’t want or need. The 0% aspect doesn’t affect this grievance as the dealer is making money and commission on the sale of these add ons. The larger the loan = the larger the commission. Bizarrely they could also get commission on 0% loans, especially where the lender and car manufacturer are within the same group, it’s all built into the business model. As an aside I would also look into the extended warranty and its value depending on the type if car. A friend complained and got the extended warranty on his vehicle refunded as compensation after trying to use it, only to be told by the manufacturer that extended warranties were never needed for their vehicles and he shouldn’t have been sold it.