Did your car dealer mislead you over hidden commission?
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Did your car dealer mislead you over hidden commission?
We listen. We care. We win.
Did your car dealer mislead you
over hidden commission?
We listen. We care. We win.
Did your car dealer mislead you
over hidden commission?
We listen. We care. We win.
Have you ever bought a car on finance? If yes, it’s quite possible you were mis-sold and that you paid a secret commission. An investigation by the Financial Conduct Authority has found evidence of widespread mis-selling across all types of car financing options. Unbeknown to customers, some car retailers received commissions from lenders linked to the interest rate customers were charged. Given that car retailers can set the interest rate, this created an incentive for them to sell more expensive credit – acting against their customers’ best interests.
Often called a PCP claim, if you bought a car on any type of finance, then it’s quite possible you have a claim. The quickest and simplest way to know if you have a mis-sold car finance claim is for us to review your car finance agreement and then check if ‘secret’ commission was paid to the car dealer / finance broker for arranging the credit agreement. However, ask yourself:
If you’re unsure then it’s likely you didn’t receive the best advice and were therefore mis-sold. That was certainly the outcome of a mystery shopping exercise, undertaken by the Financial Conduct Authority, which found that:
“Button F, we called it. The F stood for finance and was the key on our calculators that let us car salespeople adjust the interest rate on customer loans in order to boost our commission. Depending on the value of the deal and the APR we were able to get away with, this commission – after the dealership had taken its cut – could equal what we earned on the sale of the car itself. Our customers knew none of this, of course. They assumed that our frantic tappings were an effort to secure them the most favourable lending terms.”
Source: a car finance broker, speaking to Autocar
“I’ve been doing this work for 38 years and, frankly, we were getting away with murder. We weren’t treating customers fairly and were, in effect, charging them to earn us money. The FCA’s ban means all the wheeling and dealing is over. It’s not trying to stop us from earning money – just from taking the p*ss.”
Source: a car finance broker, speaking to Autocar
No. We work on a no, win no fee basis. If successful we’ll deduct 25% from any compensation awarded. If for any reason we’re unsuccessful, you won’t pay a penny. Unsure? Why not get in touch for some free, expert, initial legal advice. We’re experienced mis-sold car finance solicitors and can guide you through the claims process.
If you live in England or Wales, you can get the ball rolling by filling out our short secret commission claim questionnaire above. Don’t worry if you don’t have all the information to hand, just fill out as much as you can.
Financial Conduct Authority: Our Work on Motor Finance – Final Findings [Download PDF]
This depends on the amount of finance taken, the interest rate applied, the commission model used and the length of the repayment term. However, it’s likely to run into hundreds or thousands of pounds. If you have a copy of your car finance policy to hand then we can review this and make the necessary checks to see if your repayments included a secret commission, paid to the broker, for arranging the finance.
The Financial Conduct Authority investigated the motor industry and ruled that the way lenders chose to reward their brokers were harmful to customers who ended up paying more for their car finance. The use of ‘discretionary commission’, whereby the dealer doesn’t have to disclose what kickbacks they receive from the lender, has now been banned. However, it’s worth noting the FCA’s ban doesn’t prohibit the commission itself. The difference is that it must be disclosed, making it more transparent. However, the British public has unwittingly been paying secret commissions, within their car finance deals, for years.
Send us a copy of your car finance agreement, which we will treat in confidence (see our Privacy Policy). We’ll then review this and advise you if you have a claim.
If we accept your case, and you instruct us to act on your behalf, we’ll make a claim against the lender
If we can demonstrate you were mis-sold car finance, then we’ll recover compensation for you.
CEL Solicitors are experts in civil litigation with an experienced team specialising in financial mis-selling claims, including secret commission claims. If you’re looking for dedicated mis-sold car finance solicitors, then we can help. We believe in people before profits and for too long people have been mis-sold financial products, including those containing secret commissions, which subsequently creates unfair relationships between consumers, brokers and lenders. We’re therefore committed to getting car finance customers compensation and ensuring they get the redress they deserve.
