Blackhorse admit discretionary payment.

Johnjohn2019

I've had a letter from Blackhorse confirming that my loan included a discretionary payment   Unfortunately i only had the loan for 12 months before settling it. Do you think when compensation is settled towards Christmas  I will receive a pro rata payment? I can't get my head around whether I paid the full amount including the hidden payment when I settled?

Hoenir

Be 2025 not 2024 until the results of the enquiry are published. 

dunstonh

I've had a letter from Blackhorse confirming that my loan included a discretionary payment

 Do you think when compensation is settled towards Christmas  I will receive a pro rata payment? 

Remember that discretionary can be positive, neutral or negative.   So, at this stage, all you know is that dealer operated discretionary commission.   Not how it was used.  If it was neutral or positive then you won't get a penny.   And at this stage we don't know how the FCA will rule.   And it won't be Christmas 2024 and it may not be Christmas 2025 given the legal challenges going on.

I can't get my head around whether I paid the full amount including the hidden payment when I settled?

If we assume it was negative DCA then the amount would be reduced through early repayment.

Nasqueron

Johnjohn2019 said:

I've had a letter from Blackhorse confirming that my loan included a discretionary payment   Unfortunately i only had the loan for 12 months before settling it. Do you think when compensation is settled towards Christmas  I will receive a pro rata payment? I can't get my head around whether I paid the full amount including the hidden payment when I settled?

The FCA haven't even decided that there was mis-selling at all, there is no guarantee any compensation will be paid, even if there was, as per dunstonh's post, you may well not have been affected so get nothing anyway, wait until the review finishes.

FormerMotorFinanceWorker

Compensation will be paid and negative discretionary repayments will be highly unlikely, because there is no harm to the customer if that was to occur. The review is focussed on excess interest paid by uplifting the APR on the loans to gain the dealer or intermediary extra commission. Firms have already been told to put money aside before the final ruling...and the wheels are already in motion to examine the extent at which it was used and determine the calculations for redress to the customer and whether the FCA want to include any penalties to the finance providers on top of that.
It could be that the APR on the loan was only uplifted by 1 or 2 % above the standard rate, so the redress will be the excess interest that you paid over the lifetime of the agreement (even if it was paid off early) with interest added over time since it was paid.