Kirky Jambo Posted January 20 Share Posted January 20 Apologies if already a thread on this, couldn’t see it. Calling it a scandal might be a bit OTT but it seems a recent FCA ruling means millions of people could be due refunds on PCP deals before Jan 2021. The crux of it is that brokers (car dealers) were incentivized by the finance providers (often big banks) to charge higher interest rates through something called a discretionary commission arrangement. It has been found to be illegal and the ban will be applied retrospectively, meaning millions could be due refunds. Just wondering if anyone is clued up on this. I had a finance deal but after reading my contract still have no idea if this type of arrangement applied. It seems I just have to ask the finance provider and then take their word for it. Not sure I trust them not to just fob me off 😂. Anyone else looking into this? It’s early days but suggestions are it could cost the banks billions. Quote Link to comment Share on other sites More sharing options...
hughesie27 Posted January 20 Share Posted January 20 The PPI advert makers will be rubbing their hands. Martin Lewis was talking about it briefly on his show the other night but says its too early to give out much advise on it. Quote Link to comment Share on other sites More sharing options...
vegas-voss Posted January 20 Share Posted January 20 Robbing *******s you would think they would learn past lessons but no straight onto the next scam with the *****. Quote Link to comment Share on other sites More sharing options...
Tommy Brown Posted January 20 Share Posted January 20 Is it not more a case of people applying for PPI and dealer saying you couldn't get that deal. But we can get you similar at a higher %. Dealer getting you the deal that gave them better commission. I recall reading of this on here in the past. I hope some on here make claims and win. Quote Link to comment Share on other sites More sharing options...
ArcticJambo Posted January 20 Share Posted January 20 of couse they'll be at it, who isnt! Quote Link to comment Share on other sites More sharing options...
henrysmithsgloves Posted January 21 Share Posted January 21 They warned the motor trade years ago this day"might" come🤣 . Did not stop them though 😳 Quote Link to comment Share on other sites More sharing options...
samgolden Posted January 27 Share Posted January 27 I would never take pcp on a new car or any car you would be better getting a bank loan other than using car finance PCP or HP the % rate is far lower and the car is yours at the end if finance is limited go for a lesser value Quote Link to comment Share on other sites More sharing options...
Tommy Brown Posted January 28 Share Posted January 28 10 hours ago, samgolden said: I would never take pcp on a new car or any car you would be better getting a bank loan other than using car finance PCP or HP the % rate is far lower and the car is yours at the end if finance is limited go for a lesser value Not always the case Quote Link to comment Share on other sites More sharing options...
heartsfc_fan Posted January 28 Share Posted January 28 15 hours ago, samgolden said: I would never take pcp on a new car or any car you would be better getting a bank loan other than using car finance PCP or HP the % rate is far lower and the car is yours at the end if finance is limited go for a lesser value Not always the case. I've had 0% PCP deals. Quote Link to comment Share on other sites More sharing options...
Tommy Brown Posted February 6 Share Posted February 6 (edited) Martin Lewis money show on ITV tonight at 8pm (ITVX if you miss it) Doing a piece on this. @Kirky Jambo Edited February 6 by Tommy Brown Quote Link to comment Share on other sites More sharing options...
Kirky Jambo Posted February 6 Author Share Posted February 6 2 hours ago, Tommy Brown said: Martin Lewis money show on ITV tonight at 8pm (ITVX if you miss it) Doing a piece on this. @Kirky Jambo Cheers - will give it a watch 👍 Quote Link to comment Share on other sites More sharing options...
RustyRightPeg Posted February 6 Share Posted February 6 Missed this. Did anything come of it? Quote Link to comment Share on other sites More sharing options...
The Real Maroonblood Posted February 6 Share Posted February 6 20 minutes ago, RustyRightPeg said: Missed this. Did anything come of it? If you sign up to Money Saving Expert they will give you a template to make a claim. Quote Link to comment Share on other sites More sharing options...
Shanks said no Posted February 7 Share Posted February 7 https://www.moneysavingexpert.com/reclaim/reclaim-car-finance/?utm_source=MSE_Newsletter&utm_medium=email&utm_term=06-Feb-24-ed6e6ed61a34e258e41-65c28454ac3533799df934ba6de8818c&source=CRM-MSETIP-ed6e6ed61a34e258e41&utm_campaign=nt-hiya&utm_content=2 Quote Link to comment Share on other sites More sharing options...
Tommy Brown Posted February 7 Share Posted February 7 I knew there had been a thread on this previously @Jambomuzz Quote Link to comment Share on other sites More sharing options...
jamb0_1874 Posted February 7 Share Posted February 7 I do wonder how many people wouldnt have taken out the deal they did if they had known this information at the time as surely if you took out such a deal then you were quite happy to sign up to it at the time. It just seems to be another example of the bonkers world we live in now. Quote Link to comment Share on other sites More sharing options...
Ribble Posted February 7 Share Posted February 7 6 hours ago, jamb0_1874 said: I do wonder how many people wouldnt have taken out the deal they did if they had known this information at the time as surely if you took out such a deal then you were quite happy to sign up to it at the time. It just seems to be another example of the bonkers world we live in now. The issue was that people were made to believe that the deal they were getting was the best they qualified for, when in actual fact better deals were there but didn't offer as high of a commission to the garage. Quote Link to comment Share on other sites More sharing options...
jamb0_1874 Posted February 7 Share Posted February 7 22 minutes ago, Ribble said: The issue was that people were made to believe that the deal they were getting was the best they qualified for, when in actual fact better deals were there but didn't offer as high of a commission to the garage. No I get that and I totally understand why the FCA have made the ruling that they have but I guess my point is why does everything end up in compensation claims now. We cant just fine the wrong do'ers and be done with it. I would totally get it if there was something hidden in the contract that wasn't explained but I don't think this is the case with this one. It seems to be getting over looked that the people involved must have been happy with the deal they got at the time and if they weren't happy with the deal then why on earth did they sign up to it? Quote Link to comment Share on other sites More sharing options...
Dean Winchester Posted February 7 Share Posted February 7 44 minutes ago, jamb0_1874 said: No I get that and I totally understand why the FCA have made the ruling that they have but I guess my point is why does everything end up in compensation claims now. We cant just fine the wrong do'ers and be done with it. I would totally get it if there was something hidden in the contract that wasn't explained but I don't think this is the case with this one. It seems to be getting over looked that the people involved must have been happy with the deal they got at the time and if they weren't happy with the deal then why on earth did they sign up to it? Because people where mis sold? The DCA's where hidden and incentivised brokers to give a higher interest rate than the customer possibly should have been on. This won't have appeared on the contract as far as I'm aware. Quote Link to comment Share on other sites More sharing options...
RustyRightPeg Posted February 7 Share Posted February 7 48 minutes ago, jamb0_1874 said: No I get that and I totally understand why the FCA have made the ruling that they have but I guess my point is why does everything end up in compensation claims now. We cant just fine the wrong do'ers and be done with it. I would totally get it if there was something hidden in the contract that wasn't explained but I don't think this is the case with this one. It seems to be getting over looked that the people involved must have been happy with the deal they got at the time and if they weren't happy with the deal then why on earth did they sign up to it? That's what mis-sold means 😂 Quote Link to comment Share on other sites More sharing options...
jamb0_1874 Posted February 7 Share Posted February 7 1 minute ago, Dean Winchester said: Because people where mis sold? The DCA's where hidden and incentivised brokers to give a higher interest rate than the customer possibly should have been on. This won't have appeared on the contract as far as I'm aware. But how were they mis sold? The customer was surely told that the vehicle would cost X and they agreed to this and signed up, or am I missing something? Quote Link to comment Share on other sites More sharing options...
Dean Winchester Posted February 7 Share Posted February 7 1 minute ago, jamb0_1874 said: But how were they mis sold? The customer was surely told that the vehicle would cost X and they agreed to this and signed up, or am I missing something? Say the finance company offer a 2.5% rate and a 3.5% rate. The 2.5% rate benefits the customer... The 3.5% rate has a DCA attached which benefits the dealership in the form of commission. You get no sight of the 2.5% offer and accept the 3.5% as "it's the best they could do". Quote Link to comment Share on other sites More sharing options...
jamb0_1874 Posted February 7 Share Posted February 7 1 hour ago, Dean Winchester said: Say the finance company offer a 2.5% rate and a 3.5% rate. The 2.5% rate benefits the customer... The 3.5% rate has a DCA attached which benefits the dealership in the form of commission. You get no sight of the 2.5% offer and accept the 3.5% as "it's the best they could do". So in this example the buyer was offered a rate of 3.5% even although there was a rate of 2.5% available to them but the dealer pushed the 3.5% as it benefited the dealer financial to do so? Quote Link to comment Share on other sites More sharing options...
Sooperstar Posted February 7 Share Posted February 7 2 minutes ago, jamb0_1874 said: So in this example the buyer was offered a rate of 3.5% even although there was a rate of 2.5% available to them but the dealer pushed the 3.5% as it benefited the dealer financial to do so? Yes, that's the whole point! Quote Link to comment Share on other sites More sharing options...
jamb0_1874 Posted February 7 Share Posted February 7 Ok So two people go into the same car dealership and they both buy identical cars, even the colour is the same. They both leave the dealership delighted with their purchases and are looking forward to driving them home and having it sit on their driveway however one of them paid £25k for the car and the other paid £23k. Was the person who paid 25k mid sold the car? Quote Link to comment Share on other sites More sharing options...
jamb0_1874 Posted February 7 Share Posted February 7 Look I'm not saying that there was no wrong done here but is it correct to be handing out compensation to people who were happy to do these deals just because they could and maybe should have gotten an even better deal than the one they were already happy with! Good luck to everybody who capitalises on this but as I said for me it's just another example of the bonkers world we live in. Quote Link to comment Share on other sites More sharing options...
Sooperstar Posted February 7 Share Posted February 7 2 hours ago, jamb0_1874 said: Look I'm not saying that there was no wrong done here but is it correct to be handing out compensation to people who were happy to do these deals just because they could and maybe should have gotten an even better deal than the one they were already happy with! Good luck to everybody who capitalises on this but as I said for me it's just another example of the bonkers world we live in. Quite a strange attitude to have towards the mis-selling of a financial product in a regulated sector. Quote Link to comment Share on other sites More sharing options...
Dennis Reynolds Posted February 7 Share Posted February 7 2 hours ago, jamb0_1874 said: Ok So two people go into the same car dealership and they both buy identical cars, even the colour is the same. They both leave the dealership delighted with their purchases and are looking forward to driving them home and having it sit on their driveway however one of them paid £25k for the car and the other paid £23k. Was the person who paid 25k mid sold the car? If the person who bought it for £25k wasn't told that it was actually available for £23k but was only buying it for £25k so the dealer could make extra commission with a finance deal then yes, they would have been misold. People buying cars at different prices is not the same thing though. Quote Link to comment Share on other sites More sharing options...
jamb0_1874 Posted February 7 Share Posted February 7 13 minutes ago, Dennis Reynolds said: If the person who bought it for £25k wasn't told that it was actually available for £23k but was only buying it for £25k so the dealer could make extra commission with a finance deal then yes, they would have been misold. People buying cars at different prices is not the same thing though. Am not sure how its any different tbh. In both circumstances the customer was happy with the deal they got while the seller made extra money on the deal. The joys of capitalism! Quote Link to comment Share on other sites More sharing options...
Dennis Reynolds Posted February 7 Share Posted February 7 1 minute ago, jamb0_1874 said: Am not sure how its any different tbh. In both circumstances the customer was happy with the deal they got while the seller made extra money on the deal. The joys of capitalism! The customer would have been happier with the cheaper deal that was available though that they were not told about. Quote Link to comment Share on other sites More sharing options...
Ribble Posted February 7 Share Posted February 7 29 minutes ago, jamb0_1874 said: Am not sure how its any different tbh. In both circumstances the customer was happy with the deal they got while the seller made extra money on the deal. The joys of capitalism! Car prices are not regulated where car finance is. Using your example it would be 2 people both with identical credit worthiness going to different dealerships and buying the exact same car at a list price of £25k, first guy gets an honest dealer who gives them the best finance rate available making the total cost of the car £28k. Second guy goes to a dodgy dealership who ignores the best rate in favour of getting a kickback and the total cost of the car becomes £30k, do you not think that the second guy has grounds to claim the £2k back from the dodgy dealership? Quote Link to comment Share on other sites More sharing options...
jamb0_1874 Posted February 7 Share Posted February 7 1 minute ago, Dennis Reynolds said: The customer would have been happier with the cheaper deal that was available though that they were not told about. I dont disagree with that, we all want to pay the best price we can but I keep on coming back to the fact that the customers must have been happy with the deals at the time otherwise they wouldnt have done the deal. Its a bit like the whole "diesel emissions scandal" I cant imagine the vast majority of these people wouldnt have bought these cars if the correct emissions data was presented to them. Yes fine the companies for doing wrong but do we really need to be handing out compenstation to the people who bought them. Quote Link to comment Share on other sites More sharing options...
Dennis Reynolds Posted February 7 Share Posted February 7 4 minutes ago, jamb0_1874 said: I dont disagree with that, we all want to pay the best price we can but I keep on coming back to the fact that the customers must have been happy with the deals at the time otherwise they wouldnt have done the deal. You keep coming back to it because you seem to be completely missing the point. Whether or not the customer was 'happy' is irrelevant. Quote Link to comment Share on other sites More sharing options...
jamb0_1874 Posted February 7 Share Posted February 7 Just now, Ribble said: Car prices are not regulated where car finance is. Using your example it would be 2 people both with identical credit worthiness going to different dealerships and buying the exact same car at a list price of £25k, first guy gets an honest dealer who gives them the best finance rate available making the total cost of the car £28k. Second guy goes to a dodgy dealership who ignores the best rate in favour of getting a kickback and the total cost of the car becomes £30k, do you not think that the second guy has grounds to claim the £2k back from the dodgy dealership? My point is the person that bought it knew he was getting it for a total price of £30k and was happy to do the deal. If they thought it would cost £28k and ended up costing £30k through something hidden in the small print that wasnt pointed out, then they have been mis sold and should be given compensation but that doesnt seem to be the case in this, they just never got given the opportunity to get the £28k deal but were happy with the deal they got and done the deal. Just for the record am not saying they shouldnt have been offered the 28k deal but is it really the garages fault that they bought it at the higher rate. Its a bit like if I go to one shop and buy a tv for 1k you go to another shop and buy the exact same tv for £800 is that the fault of the shop that sold it to me at the higher price? Quote Link to comment Share on other sites More sharing options...
Dean Winchester Posted February 7 Share Posted February 7 16 minutes ago, jamb0_1874 said: Just for the record am not saying they shouldnt have been offered the 28k deal but is it really the garages fault that they bought it at the higher rate. Its a bit like if I go to one shop and buy a tv for 1k you go to another shop and buy the exact same tv for £800 is that the fault of the shop that sold it to me at the higher price? Yes its the garages fault because the garage was able to set the interest rate themselves within a specific range and thats the problem... Knowing full well that setting it to the higher rate gives them a bigger commission and the customer doesn't know that a smaller interest rate is actually available. Quote Link to comment Share on other sites More sharing options...
Sooperstar Posted February 7 Share Posted February 7 2 hours ago, jamb0_1874 said: I dont disagree with that, we all want to pay the best price we can but I keep on coming back to the fact that the customers must have been happy with the deals at the time otherwise they wouldnt have done the deal. Its a bit like the whole "diesel emissions scandal" I cant imagine the vast majority of these people wouldnt have bought these cars if the correct emissions data was presented to them. Yes fine the companies for doing wrong but do we really need to be handing out compenstation to the people who bought them. The cars caught up on the diesel scandal are not worth as much as those customers paid for them. When they come to sell them, they'll be affected by that. Some vehicles had to be fixed to comply with emissions standards which then negatively impacted fuel efficiency - again a cost to the consumer. Quote Link to comment Share on other sites More sharing options...
Dazo Posted February 8 Share Posted February 8 How far does this go back ? I’d imagine tracking down old car registration numbers will be tricky. Like ppi not everyone was mis sold but will no doubt be trying to claim. Quote Link to comment Share on other sites More sharing options...
Dean Winchester Posted February 8 Share Posted February 8 21 minutes ago, Dazo said: How far does this go back ? I’d imagine tracking down old car registration numbers will be tricky. Like ppi not everyone was mis sold but will no doubt be trying to claim. I haven't seen a limit the precondition just seems to be before January 2021. If you don't have the documentation though you're probably going to be constrained by 7 years of records whether that's your bank statements, credit report or the financial firms records. Quote Link to comment Share on other sites More sharing options...
Dazo Posted February 8 Share Posted February 8 19 minutes ago, Dean Winchester said: I haven't seen a limit the precondition just seems to be before January 2021. If you don't have the documentation though you're probably going to be constrained by 7 years of records whether that's your bank statements, credit report or the financial firms records. And I think that’s how the finance companies will try to get out of it. Quote Link to comment Share on other sites More sharing options...
Dean Winchester Posted February 8 Share Posted February 8 That's partly why I think Martin Lewis is asking people to put in Information requests now to get it in writing what agreements you had and whether FCA was applied on them so that you're not timed out of it. Quote Link to comment Share on other sites More sharing options...
Sooperstar Posted February 8 Share Posted February 8 4 hours ago, Dazo said: How far does this go back ? I’d imagine tracking down old car registration numbers will be tricky. Like ppi not everyone was mis sold but will no doubt be trying to claim. I've seen a date of 2007 as being the oldest possible. As has been said though if going that far back then you'll probably need to have your agreement details as firms only have to hold them for 6 years beyond the end of your agreement. Quote Link to comment Share on other sites More sharing options...
Dazo Posted February 8 Share Posted February 8 3 minutes ago, Sooperstar said: I've seen a date of 2007 as being the oldest possible. As has been said though if going that far back then you'll probably need to have your agreement details as firms only have to hold them for 6 years beyond the end of your agreement. There will be a lot of people who don’t keep those sort of records. Quote Link to comment Share on other sites More sharing options...
Psychedelicropcircle Posted February 8 Share Posted February 8 My last was a 0% deal how much is in it for me😜 Quote Link to comment Share on other sites More sharing options...
heartsfc_fan Posted February 8 Share Posted February 8 1 hour ago, Psychedelicropcircle said: My last was a 0% deal how much is in it for me😜 None. I've had a couple of 0%s aswell but can't claim, for obvious reasons Quote Link to comment Share on other sites More sharing options...
Armageddon Posted February 8 Share Posted February 8 2 hours ago, Psychedelicropcircle said: My last was a 0% deal how much is in it for me😜 Why are you posting on this thread if you have 0 interest? 😂😂😂😬😬😬 Quote Link to comment Share on other sites More sharing options...
RustyRightPeg Posted February 9 Share Posted February 9 Sent my enquiry into Blackhorse yesterday. Let's see what happens. Quote Link to comment Share on other sites More sharing options...
151 Posted February 26 Share Posted February 26 Anyone got any update with this? I didn't ever do the diesel claim one and haven't really gave this one a thought until now. Quote Link to comment Share on other sites More sharing options...
The Real Maroonblood Posted February 26 Share Posted February 26 35 minutes ago, 151 said: Anyone got any update with this? I didn't ever do the diesel claim one and haven't really gave this one a thought until now. No update but according to Martin Lewis it will be September before any news. Quote Link to comment Share on other sites More sharing options...
Malinga the Swinga Posted February 26 Share Posted February 26 On 07/02/2024 at 21:38, Ribble said: Car prices are not regulated where car finance is. Using your example it would be 2 people both with identical credit worthiness going to different dealerships and buying the exact same car at a list price of £25k, first guy gets an honest dealer who gives them the best finance rate available making the total cost of the car £28k. Second guy goes to a dodgy dealership who ignores the best rate in favour of getting a kickback and the total cost of the car becomes £30k, do you not think that the second guy has grounds to claim the £2k back from the dodgy dealership? Absolutely not. They aren't a dodgy dealership because price was more, maybe first one using as loss leader, or stock clearance was on. Only dodgy if they said car was price A but charged price B. That isn't the case, it's lazy consumers not shopping around. Take some personal responsibility for your actions and stop bleating like a child when you lose out. Alternatively, every identical item in every different shop must be regulated and come in at same price or some poor wee lamb might spend more. As for Martin Lewis, guy gets paid fortune for adding nothing to anything. A presenter for the terminally stupid and gullible. Quote Link to comment Share on other sites More sharing options...
Dennis Reynolds Posted February 26 Share Posted February 26 25 minutes ago, Malinga the Swinga said: Absolutely not. They aren't a dodgy dealership because price was more, maybe first one using as loss leader, or stock clearance was on. Only dodgy if they said car was price A but charged price B. That isn't the case, it's lazy consumers not shopping around. Take some personal responsibility for your actions and stop bleating like a child when you lose out. Alternatively, every identical item in every different shop must be regulated and come in at same price or some poor wee lamb might spend more. As for Martin Lewis, guy gets paid fortune for adding nothing to anything. A presenter for the terminally stupid and gullible. Honestly impressive how you can be so confidently wrong about nearly everything you post on here. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.