The City regulator will review whether people who believe they were charged too much for car loans are owed compensation.
The Financial Conduct Authority (FCA) has stepped in to avoid a chaotic run of complaints from car-buyers.
About 10,000 people have made complaints to an ombudsman with “many more waiting in the wings”.
About 10,000 people have made complaints to an ombudsman with “many more waiting in the wings”.
Some lenders had allowed dealers to adjust interest rates, which would improve the commission they received.
As a result, these arrangements created an incentive for brokers to increase how much people were charged for their car loan.
In 2021, the FCA banned these discretionary commission arrangements, following a review, claiming it would collectively save drivers £165m a year.
However, it said there had been a high number of complaints from customers to motor finance firms, claiming compensation for commission arrangements before the ban.
The City regulator will review whether people who believe they were charged too much for car loans are owed compensation.
About 10,000 people have made complaints to an ombudsman with “many more waiting in the wings”.
The Financial Conduct Authority (FCA) has stepped in to avoid a chaotic run of complaints from car-buyers.
Some lenders had allowed dealers to adjust interest rates, which would improve the commission they received.
About 10,000 people have made complaints to an ombudsman with “many more waiting in the wings”.
About 10,000 people have made complaints to an ombudsman with “many more waiting in the wings”.
Some lenders had allowed dealers to adjust interest rates, which would improve the commission they received.
As a result, these arrangements created an incentive for brokers to increase how much people were charged for their car loan.
In 2021, the FCA banned these discretionary commission arrangements, following a review, claiming it would collectively save drivers £165m a year.
However, it said there had been a high number of complaints from customers to motor finance firms, claiming compensation for commission arrangements before the ban.
#Watchdog #investigate #compensation #car #loans
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