Car Finance Lenders Get Extension to Respond to Hidden Commission Complaints

Car finance lenders have been granted an extension to respond to customer complaints regarding concealed commission payments. This follows a Court of Appeal decision that customers must be explicitly informed about the commission amount and give their consent, otherwise, it would be unlawful for the lender to pay any commission to the dealer. Close Brothers, one of the lenders implicated in the case, has since been allowed to appeal against the ruling.

This is the latest twist in the car finance investigation, with lenders preparing to potentially reimburse billions of pounds to consumers who may have been mis-sold motor deals. The Financial Conduct Authority (FCA) has now given car finance lenders until December 4 next year to address complaints about hidden commission payments. The FCA has been conducting a separate probe into so-called discretionary commission arrangements, which saw dealers set higher interest rates on credit agreements, leading to consumers being charged more without their knowledge. This practice was prohibited in 2021. Importantly, the new pause by the FCA includes car leasing - unlike the separate investigation into discretionary commission arrangements, which did not include car leasing. The FCA plans to outline the next steps in its review in May next year, reports the Mirror. Martin Lewis has responded to recent updates by urging consumers not to hesitate in filing complaints if they believe they have been mis-sold. His statement on X reads: 'The fact leasing has been brought into scope significantly widens the potential number of complainants. Yet all this is dependent on the Supreme Court agreeing with the Court of Appeal when it hears the appeal in Spring(ish), and that is far from certain. The pause doesn't stop people complaining. It just says firms don't have to make a decision on the complaint while the ruling is awaite

Nederland Laatste Nieuws, Nederland Headlines

Similar News:Je kunt ook nieuwsberichten lezen die vergelijkbaar zijn met deze die we uit andere nieuwsbronnen hebben verzameld.

UK’s highest court to hear appeal on car finance mis-sellingClose Brothers has been granted permission to appeal against a landmark ruling in the UK’s Supreme Court.
Bron: LBCNews - 🏆 75. / 59 Lees verder »

Santander sets aside £295mn to cover costs over car finance rulingProvision made after court decision last month on mis-selling of car loans
Bron: FT - 🏆 113. / 51 Lees verder »