HUGE car finance update signals ALL mis-sold commission complaints could come under probe

MSE_Molly_G

A major investigation into hidden, unfair car finance commission has had a huge update, which MoneySavingExpert.com founder Martin Lewis has said could double the number of people who are due a payout. Here's what we know so far, though it's still early days and Martin cautions we have "lots more reading and thinking to do".

HUGE car finance update signals ALL mis-sold commission complaints could come under probe – Martin Lewis explains what's happening

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Nasqueron

People who work in sales usually work on commission, this isn't huge or breaking news! The Court of Appeal don't live in the real world and all of us will pay more for finance, just as the overdraft investigation resulted in all banks whacking the rates up to 40%

473813

On a personal level, this could be good for me as I completed the tool and was informed by my former car finance company that I only had fixed commission so they closed my case. However, it is worrying that it could cost more for consumers longer term to have cars on finance. Does anyone know if we have to complete and send the reclaim tool again if we have already done it and the case was closed following a result of ‘fixed commission’? 

newmee

I know I would possibly have a claim but have no record of my registration plate from that time. I have not kept copies of old insurance docs or old log books and can't remember enough details. Annoying! 

born_again

While slightly off topic.
Who's else is thinking that all the insurance comparison sites & insurance companies will be the next target. As we all know there is a kick back = commission, which we are never told.

This whole claim simply because you were never told how much the finance co was paying the sales person is a joke.

dunstonh

Its not just the FCA and the courts now.  The Treasury are now involved over fears it could impact on car sales.

Does anyone know if we have to complete and send the reclaim tool again if we have already done it and the case was closed following a result of ‘fixed commission’? 

No.  You need to wait for the appeals and the outcome of work being done by the FCA and the Treasury.    Currently that is 2025 but expected to be put back to 2026 or 2027.

Maddison89

I used the free online tool to get in touch with the last three finance companies I used when purchasing my cars. One of them has already agreed that there was a discretionary commission on the finance deal. As the rules have now changed and the claims could apply to all of the finance commission, do I need to get in touch with them again using the new online tool when available or is the original letter enough?

dunstonh

. As the rules have now changed and the claims could apply to all of the finance commission, do I need to get in touch with them again using the new online tool when available or is the original letter enough?

The rules have not changed.   It was the opinion of the court but an application for appeal has been made.   Plus, it is quite frankly a daft situation that has consequences across a number of areas and not just car finance.   

If the appeals fail, then it will be all commission unless the law is changed (and with the Treasury now involved, that is a possibility).    

Bottom line is that it is too early to tell (even having DCA doesnt mean you were getting a refund - DCA could be used positively, negatively or neutral.  Only negative DCA was the area that would have likely ended up having a refund).

Hoenir

born_again said:

While slightly off topic.
Who's else is thinking that all the insurance comparison sites & insurance companies will be the next target. As we all know there is a kick back = commission, which we are never told.

This whole claim simply because you were never told how much the finance co was paying the sales person is a joke.

The consequences potentially extend to all manner of business activities. 

DullGreyGuy

born_again said:

While slightly off topic.
Who's else is thinking that all the insurance comparison sites & insurance companies will be the next target. As we all know there is a kick back = commission, which we are never told.

This whole claim simply because you were never told how much the finance co was paying the sales person is a joke.

Insurance is different though because you buy from the broker or the insurer (the former of which already have to disclose there is commission and how much on request). Aggregators may show you prices but are not actually involved in the actual sale, they pass you on to the seller to review the details and conduct the sale directly with them. 

Not sure why you are picking on insurance though given credit cards, loans, mortgages etc which can be compared by the same websites also get commission on leads that result in a sale. 

bluesman65

This is going to be a long drawn out issue with some sites report billions in compensation claims what they should do is sort the ones that have already be established with DCA , I did use that template so I advise those  who have not submit a DCA claim to use the template Martin provided, someone asked when do you think you will receive your compensation claim I said I don't know maybe in 2026 maybe even latter, we're dealing with big players in car fiance game who are not going to give up without a fight