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HUGE car finance update signals ALL mis-sold commission complaints could come under probe
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Looks like the banks will have to get their cheque books out after all.0
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Largs said:Looks like the banks will have to get their cheque books out after all.
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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Hi,
I'm enquiring on behalf of a family member. They are aware of this claim possibility thru this site, but haven't really considered it up until now.
They took out a VW car finance ("hire purchase") agreement around 2017 and are not sure if they can bring a claim. They only took out the agreement because it made sense at the time, as by taking out the agreement they received additional free car servicing benefits which were given for taking out the finance. They repaid the loan amount in full quite quickly incurring only little interest and the finance agreement was settled and closed. Should they still claim or is this really meant for people who have lost out financially more substantially, i.e. does it depend on real demonstrable/substantial financial losses for agreements where several repayments were made and the agreement wasn't settled early?
Many thx.0 -
DIYhelp76 said:Hi,
I'm enquiring on behalf of a family member. They are aware of this claim possibility thru this site, but haven't really considered it up until now.
They took out a VW car finance ("hire purchase") agreement around 2017 and are not sure if they can bring a claim. They only took out the agreement because it made sense at the time, as by taking out the agreement they received additional free car servicing benefits which were given for taking out the finance. They repaid the loan amount in full quite quickly incurring only little interest and the finance agreement was settled and closed. Should they still claim or is this really meant for people who have lost out financially more substantially, i.e. does it depend on real demonstrable/substantial financial losses for agreements where several repayments were made and the agreement wasn't settled early?
Many thx.
They do not have to claim anything.
a) the FCA are looking to make it pro-active on lenders and not reactive. Complaints will not be required.
b) The expectation is that it will only apply to the rate affected by the additional commission. e.g. if normal rate was 3% and the DCA increased it to 4%, then it will be the difference, not the whole amount.
The final outcome is unknown and will be until the court cases have completed. So, for th moment, the family member does nothing and waits to see what the FCA say.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
Thanks Dunstonh for the helpful reply. I'll pass this on. Saw also a recent update from Martin Lewis on this so, as you say, it does seem like everyone should be automatically contacted if they are due any compensation, so no need for them to proactively submit any claim. Much appreciated.0
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As my PCP car financing goes right back beyond the claim dates, involving quite a few vehicles (13 within dates allowed to claim), I enlisted the help of a legal firm on a no win no fee basis. My case went through to a court hearing last December but was stopped due to the High Court, and Court of Appeal review. From Martin's latest bulletin it may be the Finance companies will, based on a FCA/Court calculation, automatically pay customers directly. My question is can I stop my claims with my lawyers as this basis of claiming compensation has been overridden?0
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TheSaxonman said:As my PCP car financing goes right back beyond the claim dates, involving quite a few vehicles (13 within dates allowed to claim), I enlisted the help of a legal firm on a no win no fee basis. My case went through to a court hearing last December but was stopped due to the High Court, and Court of Appeal review. From Martin's latest bulletin it may be the Finance companies will, based on a FCA/Court calculation, automatically pay customers directly. My question is can I stop my claims with my lawyers as this basis of claiming compensation has been overridden?
If the clams companies are FCA regulated rather than law society, then there is a good chance that the FCA will tell claims companies that they cannot take a share of the redress if the FCA chooses to proceed with a section 404 redress scheme. If the firms are law society regulated, then it will be up to the law society what it instructs.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
TheSaxonman said:As my PCP car financing goes right back beyond the claim dates, involving quite a few vehicles (13 within dates allowed to claim), I enlisted the help of a legal firm on a no win no fee basis. My case went through to a court hearing last December but was stopped due to the High Court, and Court of Appeal review. From Martin's latest bulletin it may be the Finance companies will, based on a FCA/Court calculation, automatically pay customers directly. My question is can I stop my claims with my lawyers as this basis of claiming compensation has been overridden?0
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Thank you for your responses. I guess I will have to wait to see the Appeal Court decided. I bet the Lenders will employ specialised lawyers/Barristers to appeal again.0
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TheSaxonman said:Thank you for your responses. I guess I will have to wait to see the Appeal Court decided. I bet the Lenders will employ specialised lawyers/Barristers to appeal again.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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