Hidden discretionary commission Nissan - Mobilize

Sharky2024

My family have had 6 finance agreements with Nissan. I used the reclaim tool on MSE's website, Mobilize have replied to all 6 claims saying "After reviewing our records, we can tell you that no commission was paid to the supplying dealer for your introduction" 

Am I misunderstanding this ? I thought this was about dealers increasing interest rates not about them being paid an introduction fee.

I'm not sure what my next steps are. Do I reply, If so what should I actually write.

dunstonh

Am I misunderstanding this ? I thought this was about dealers increasing interest rates not about them being paid an introduction fee.

Yes, you are misunderstanding it...a bit.

It is about dealers increasing the interest rate to increase the commission paid to them (not an introduction fee).   Mobilize have replied saying no commission was paid.    So, they have answered your question.

I'm not sure what my next steps are. 

Your question was answered and there is no further steps to take.    DCA doesn't apply to you.

DullGreyGuy

Sharky2024 said:

Am I misunderstanding this ? I thought this was about dealers increasing interest rates not about them being paid an introduction fee.

The reason they increased the interest rate was because it increased their commission/introduction fee. This is what created the conflict of interest, they could line their pockets at your expense.

Not normally a problem, the sales guy was free to sell you the car for as high a price as he could achieve and get a % of the final sale price but loans are a more regulated product and the FCA has a focus on conflicts of interest at the moment and hence this whole thing is going on at the moment. 

Sharky2024

Thanks for the replies and sorry for the late response.

Just a final thought, from their response, does it mean that when I took out the agreement, the dealer recieved no commision at all ? That seems strange as the offers on some of the cars were only available if you took out the finance eg. dealer contributions to the sale (up to £2k contribution) If they didn't get commision wouldn't they make the same offer to non-finance deals ?

dunstonh

Just a final thought, from their response, does it mean that when I took out the agreement, the dealer recieved no commision at all ?

That is what it says.

That seems strange as the offers on some of the cars were only available if you took out the finance eg. dealer contributions to the sale (up to £2k contribution) If they didn't get commision wouldn't they make the same offer to non-finance deals ?

That doesn't mean they received a commission.  The lender may have paid a fixed fee or a block fee rather than commission.

Hoenir

Sharky2024 said:

Thanks for the replies and sorry for the late response.

Just a final thought, from their response, does it mean that when I took out the agreement, the dealer recieved no commision at all ? That seems strange as the offers on some of the cars were only available if you took out the finance eg. dealer contributions to the sale (up to £2k contribution) If they didn't get commision wouldn't they make the same offer to non-finance deals ?

 Attractive finance deals are a way of moving metal out of the showrooms (and sitting on docksides). Some motor manufacturers own their finance arms. Likewise motor manufacturers will provide incentives to dealers on annual sales volumes achieved or specific model promotions. 

Nasqueron

Sharky2024 said:

Thanks for the replies and sorry for the late response.

Just a final thought, from their response, does it mean that when I took out the agreement, the dealer recieved no commision at all ? That seems strange as the offers on some of the cars were only available if you took out the finance eg. dealer contributions to the sale (up to £2k contribution) If they didn't get commision wouldn't they make the same offer to non-finance deals ?

In this case yes, but in plenty of cases they can pay fixed commission without DCA - commission is not banned, provided they didn't do something like the DCA issue where some dealers inflated your interest rate to get more money for themselves. In your case, you can be happy putting this to bed, knowing you were not affected and paid the market rate.

DullGreyGuy

Sharky2024 said:

Thanks for the replies and sorry for the late response.

Just a final thought, from their response, does it mean that when I took out the agreement, the dealer recieved no commision at all ? That seems strange as the offers on some of the cars were only available if you took out the finance eg. dealer contributions to the sale (up to £2k contribution) If they didn't get commision wouldn't they make the same offer to non-finance deals ?

Because the deal can be done higher up the food chain than the individual dealership that you are dealing with being either fixed commission or fixed deal. As the money doesn't go to the individual dealership they dont have a conflict of interest on if to decide to bump the interest rate a few points or not.