The Financial Conduct Authority , the industry watchdog, is investigating the issue and is expected to release its findings in September.Before it was banned by the FCA in January 2021, lenders were allowed to sell car finance to their customers on a “discretionary commission arrangement”.Often, a higher interest rate meant more commission, so there was an incentive to sell a more expensive loan.
So, many drivers were hit with expensive monthly repayments when they could have been offered a cheaper deal.Thousands of jobs at risk as Brit carmaker makes decision on factory’s futureIf you had a car finance between 2007 and 2021, either a Personal Contract Purchase or Hire Purchase agreement, then you could be due compensation.If you’re entitled to compensation, then you can use their legal services to make your case.
The service is available to new and second-hand vehicles such as cars, vans, motorbikes, and motorhomes.Finance Claims Expert So far, the Financial Ombudsman Service have published two landmark cases which sheds light on how these cases might be awarded compensation. In both cases the claimants were awarded the difference between the lowest interest rate at the time and the rate they paid.