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MSE News: Car finance redress scheme likely delayed to November due to legal challenges
The financial regulator's major car finance mis-selling redress scheme, originally planned to start in July this year, will now likely be delayed to November due to four legal challenges.
But in the meantime, it's still best to get your complaint in now, which you can do for FREE using our DIY car finance reclaim tool.
Read the full story:
Comments
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I will be quite honest this is getting quite comical now it will be a long time before this is settled who else is going to appeal I would not surprise if someone else appeals in November
I think it will be a very long time before we see anything or maybe we will never anything ,
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Probably covered before…..
Who cares what the "commission" was ? We don't buy anything based on the sellers profit margin. We buy on the end price.
Ditto when selling. We had our house on with 2 Estate Agents. The one charging higher commission found a buyer £ '000s higher.
The Court Case last August should have put an end to the FCA's nonsense. The findings were very clear - and NOT that there was a widespread "case to answer". Only in specific, defined circumstances and, usually to be taken together, then "might" compensation be due.
An employee at a Car Dealer reported that a customer came in, wanting his Finance record, so he could claim. Apparently, he was not offered a choice of lenders - one of the "faults" found by the Court last August.
That his finance was 0% interest didn't seem to deter the customer from thinking he had a claim !
How about prosecuting some of the "ambulance chasing" claims companies ?
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The FCA has already covered all this.
DCA meant customers paid more interest on their finance so the salesman got more commission
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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So…..?
How does that negate the point about final cost ?
At the final stages, Car Buyers would have been given a monthly cost. That monthly cost would have stated the interest rate applied.
Either they accepted it or they didn't. If they didn't shop around - and compare final monthly costs - who's fault is that ?
(If the monthly cost did NOT match the stated interest rate - then that would be a fault.)
Commission (profit margin) is irrelevant to pretty much everything else we buy - if we accept the final bill. By focusing on Commission being "discretionary", the FCA is trying to shift responsibility to car dealers.
To follow my Estate agent example….
Dealer A offers car and add-ons for a total of £25,000 - with a loan with 3% extra "discretionary" Commission.
Dealer B offers car with add-ons for a total of £26,000 - with a loan with 2% extra "discretionary" commission.
Which was the better deal would depend how long the Finance was.
Both may result in a similar final profit margin. So which of those Dealers is the "dodgy" one ?
A lot of people are being encouraged to think they are entitled to "free" money -paid by someone else.
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So?
You don't see the issue with a lender falsely telling a customer they could only get a certain % when they could have got it cheaper if the dealer wasn't greedy?
Clearly the FCA do hence why they banned the practice
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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How do you know that any dealer : "Falsely told a customer they could only get a certain % when they could have got it cheaper…." ?
All the dealer had to do (after agreeing the final price of the car) is show the monthly repayments. As long as they also showed the APR - then what else should they disclose ? (The margin / profit over the price from the importer / factory perhaps ??)
It is at that point the Customer should check the % APR. If he / she has a smartphone they could compare. e.g.
Or, perhaps the Customer (assuming that they needed finance) should have checked beforehand ?
"….if the dealer wasn't so greedy"…. they would offer a better price on the Part Exchange - or take a smaller margin on the car.
Where is the redress for that ???
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Car finance redress scheme - I'm after some advice please. I applied to my lender and they have replied saying I don't have a claim because no commission was paid to the dealer/broker. So does that mean there is nothing more I can do? Thank you in advance for any help provided.
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Correct. As there is no commission, there is no complaint for you to make about commission.
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 -
That is the whole point of the DCA compensation scheme lol. Lenders have records that say customer X was calculated at say 5.9% with commission of £500 but if they got the customer on a higher rate they got more commission and they can see customer X was offered 7.9% so they know if was fixed
You are assuming the customer could get bank loans at a better rate which isn't guaranteed. PCP is secured on the car, the lender can ultimately take it back and demand the customer pay back, banks are lending based only on your credit profile so may not offer better rates.
If you don't like it, that's fine but your opinion here is moot as the FCA have ruled it IS miss-selling and customers ARE entitled to compensation if they were forced to pay more interest just so the salesman got more commission.
I had a car on 0% so I'm not affected, that rate wasn't available for everyone obviously.
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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Have had an email from Benson Goldstein asking me to click a link to send an email to my lender authorising them to act for my claim, which was already made via the MSE template. How have they got my details? I have not been in touch with them.
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