Car finance - hidden commission payments
Discussion
I have bought 5 cars which this relates to and yesterday I sent of 5 emails with the details, using the MSE tool. I now wonder whether I need to send letters too, but don't want to do too much too soon as I sense there will be a swathe of lazy resistance along the lines of "there is no claim yet / we don't have your details anymore" etc.
The first car I bought was in 2011 and I have the reg, the second one was from the same company but I don't have the reg - I did part exchange the first one for the second one however. The others are are easier as I have the reg and details. None of them do I have any paperwork for however. I wonder how the claims will fare - if there is a 40 % chance that I am affected, that maybe 2/3 cars out of the 5 so only a few hundred in reality.
The first car I bought was in 2011 and I have the reg, the second one was from the same company but I don't have the reg - I did part exchange the first one for the second one however. The others are are easier as I have the reg and details. None of them do I have any paperwork for however. I wonder how the claims will fare - if there is a 40 % chance that I am affected, that maybe 2/3 cars out of the 5 so only a few hundred in reality.
Random_Person said:
I have bought 5 cars which this relates to and yesterday I sent of 5 emails with the details, using the MSE tool. I now wonder whether I need to send letters too, but don't want to do too much too soon as I sense there will be a swathe of lazy resistance along the lines of "there is no claim yet / we don't have your details anymore" etc.
The first car I bought was in 2011 and I have the reg, the second one was from the same company but I don't have the reg - I did part exchange the first one for the second one however. The others are are easier as I have the reg and details. None of them do I have any paperwork for however. I wonder how the claims will fare - if there is a 40 % chance that I am affected, that maybe 2/3 cars out of the 5 so only a few hundred in reality.
On the ML tv show this week it was said that something like 750k emails had already been sent. The first car I bought was in 2011 and I have the reg, the second one was from the same company but I don't have the reg - I did part exchange the first one for the second one however. The others are are easier as I have the reg and details. None of them do I have any paperwork for however. I wonder how the claims will fare - if there is a 40 % chance that I am affected, that maybe 2/3 cars out of the 5 so only a few hundred in reality.
Apparently some people have already had replies saying no DCA applies , some have been told no trace etc.
I don’t think the 40% can be applied simply as a percentage of how many loans you had as sense it’s more a case of what type of dealer / car itself arranges the loan ie if a used car rather than perhaps brand new.
Finance companies apparently need to use best endeavours to trace any documents but obviously no definition of that.
I also slightly struggle with the concept that the likes of VWFS did this but am clearly no expert.
Even the arrogant / loving himself ML said this was all uncharted water.
Lloyds TSB/Blackhorse setting aside an initial £450m as a provision for claims.
Lloyds sets aside £450m for car finance probe https://www.bbc.co.uk/news/business-68367430
Lloyds sets aside £450m for car finance probe https://www.bbc.co.uk/news/business-68367430
OddCat said:
They are intermediaries not brokers.
Brokers shop around for the best deal for you. An intermediary, on the other hand, acts as a link between people in order to try and bring about an agreement. Effectively a mediator. Acting for BOTH parties (the borrower and the lender).
Intermediaries are not an agent for the lender. They are authorised in their own right although I'm not sure how the FCA thought they were being paid.
If you have a look at various dealer chain websites (and I have) they all describe themselves as “We act as a credit broker”Brokers shop around for the best deal for you. An intermediary, on the other hand, acts as a link between people in order to try and bring about an agreement. Effectively a mediator. Acting for BOTH parties (the borrower and the lender).
Intermediaries are not an agent for the lender. They are authorised in their own right although I'm not sure how the FCA thought they were being paid.
These are all in the top 20 UK chains by turnover/market cap
PlywoodPascal said:
????
the arrogance behind the genuine support for and advice to a consumers across a decade of work is indeed breathtaking
So you don’t think he is either of those two things ?the arrogance behind the genuine support for and advice to a consumers across a decade of work is indeed breathtaking
I’m not saying there is anything wrong with him giving his support and advice though.
Obviously helped enormously by the many many millions he made selling his company.
Perhaps just me then.
alscar said:
PlywoodPascal said:
????
the arrogance behind the genuine support for and advice to a consumers across a decade of work is indeed breathtaking
So you don’t think he is either of those two things ?the arrogance behind the genuine support for and advice to a consumers across a decade of work is indeed breathtaking
I’m not saying there is anything wrong with him giving his support and advice though.
Obviously helped enormously by the many many millions he made selling his company.
Perhaps just me then.
You are right that I do not think (I think) that he seems especially arrogant.
I don't really know, I haven't studied Martin Lewis particularly closely. I do not find him particularly arrogant. But I do think that I find it unlikely that an inherently arrogant person would spend so much time doing something to help other people rather than focusing on themselves. I think it's great that he was able to sell what he created for a decent whack - living the PH dream, really. Hope he negotiated a fair commission with whoever handled the sale.
Caddyshack said:
I don’t think it is bitterness. I think it is feeling sorry for the people who may well lose a lot of the commission is clawed back - it isn’t clear who will pay the punter yet. It’s also the band wagon that forms, everyone will complain and get a bung even if they were not mis-sold or were perfectly happy with the rate they paid.
Ah, Anyway, clawbacks.
Normal broker rules (I may be out of date here) were always on a sliding scale from 0-12 months. So if a customer missed the first payments and promptly defaulted you'd face a 100% commission clawback, if they missed the 12th payment you might get 10%. I don't know if that's mirrored with the actual sales people, but I can't imagine they'd face clawbacks personally as you'd assume they've done outside of accepted working practices.
I'd bet that the liability will be with the finance providers, it usually is and Banks are already setting aside millions for it.
Yes, this is likely to be the next PPI scandal but that's probably not a bad thing. The last few years has seen a greater divide the very wealthy and the rest of us, if say a billion pounds is 'redistributed' from Bank Dividends to consumers, it will have a positive effect on our Economy.
Personally I send off 3 e-mails to VWFS last week using the MSE tool. One is mine, two are for my Wife. If successful the money is going to build a nice little cabin in our garden, part home office, part bike workshop, part gin palace for us to hide from the kids for a bit. It's a local company I want to use, I've been following their work on Instagram for ages. I suspect the downturn and people returning to work in offices has been tough for them. A job for them, bit more money for the owner and his workers, their suppliers and on it goes around the economy. It's better for everyone that just being thrown on the pile to be used to make more money for someone who'll never spend it.
PlywoodPascal said:
????
the arrogance behind the genuine support for and advice to a consumers across a decade of work is indeed breathtaking
Interesting, my mortgage broker who is also a lovely, fair and polite person can't stand ML either. I don't understand it - he is an ambassador for the people and has helped so many with so much. I genuinely do not think he got into it for the money, I think he is an extraordinary talent and the fact he is so eminent is entirely a reflection of that and his own doing/effort.the arrogance behind the genuine support for and advice to a consumers across a decade of work is indeed breathtaking
alscar said:
PlywoodPascal said:
????
the arrogance behind the genuine support for and advice to a consumers across a decade of work is indeed breathtaking
So you don’t think he is either of those two things ?the arrogance behind the genuine support for and advice to a consumers across a decade of work is indeed breathtaking
I’m not saying there is anything wrong with him giving his support and advice though.
Obviously helped enormously by the many many millions he made selling his company.
Perhaps just me then.
If I had to knock him, it's that he doesn't always factor in the human element. He was a big fan of stoozing and other credit card 'tricks' like using 0% swaps and things, it's all good advice, but it's introduced a lot of people to credit cards who would usually stay away. Banks aren't stupid, they know people make rash decisions and a lot of the people that Martin advised on 0% swaps etc are now holding a lot of debt thinking it's 'free money' the MSE forum is full of them.
Random_Person said:
PlywoodPascal said:
????
the arrogance behind the genuine support for and advice to a consumers across a decade of work is indeed breathtaking
Interesting, my mortgage broker who is also a lovely, fair and polite person can't stand ML either. I don't understand it - he is an ambassador for the people and has helped so many with so much. I genuinely do not think he got into it for the money, I think he is an extraordinary talent and the fact he is so eminent is entirely a reflection of that and his own doing/effort.the arrogance behind the genuine support for and advice to a consumers across a decade of work is indeed breathtaking
P-Jay said:
Personally I send off 3 e-mails to VWFS last week using the MSE tool. One is mine, two are for my Wife. If successful the money is going to build a nice little cabin in our garden, part home office, part bike workshop, part gin palace for us to hide from the kids for a bit. It's a local company I want to use, I've been following their work on Instagram for ages. I suspect the downturn and people returning to work in offices has been tough for them. A job for them, bit more money for the owner and his workers, their suppliers and on it goes around the economy. It's better for everyone that just being thrown on the pile to be used to make more money for someone who'll never spend it.
I think you are over estimating there. Its around 40% of deals affected, and then roughly 800 per deal on an average 16k loan. Even if 2 of your 3 were successful, £1600 won't buy you a cabin. 4 nights in an Airbnb with a hot tub, maybe.P-Jay said:
It may be because mortgage brokers are largely pointless unless you're completely clueless about finances. Their USP seems to be they know what banks like what, and what banks don't etc, but it's only really trial and error. There are Comparision sites for mortgages and AIPs take about 5 mins.
That total rubbish. I am savvy about finances and know that a proportion of the broker network have access to certain deals that the marketplace doesn't, as well as acceptance criteria influence, and ours has managed to get us those deals over the past 12 years. I did the whole do it yourself re mortgage once as a comparison and it was seriously painful and work heavy. Our broker does the lot, offers advice, and manages to get us an amazing deal. Random_Person said:
P-Jay said:
Personally I send off 3 e-mails to VWFS last week using the MSE tool. One is mine, two are for my Wife. If successful the money is going to build a nice little cabin in our garden, part home office, part bike workshop, part gin palace for us to hide from the kids for a bit. It's a local company I want to use, I've been following their work on Instagram for ages. I suspect the downturn and people returning to work in offices has been tough for them. A job for them, bit more money for the owner and his workers, their suppliers and on it goes around the economy. It's better for everyone that just being thrown on the pile to be used to make more money for someone who'll never spend it.
I think you are over estimating there. Its around 40% of deals affected, and then roughly 800 per deal on an average 16k loan. Even if 2 of your 3 were successful, £1600 won't buy you a cabin. 4 nights in an Airbnb with a hot tub, maybe.Random_Person said:
I think you are over estimating there. Its around 40% of deals affected, and then roughly 800 per deal on an average 16k loan. Even if 2 of your 3 were successful, £1600 won't buy you a cabin. 4 nights in an Airbnb with a hot tub, maybe.
Is any potential “ compensation “ going to be based on a flat rate or adjustable on the actual quantum of loan ?alscar said:
Random_Person said:
I think you are over estimating there. Its around 40% of deals affected, and then roughly 800 per deal on an average 16k loan. Even if 2 of your 3 were successful, £1600 won't buy you a cabin. 4 nights in an Airbnb with a hot tub, maybe.
Is any potential “ compensation “ going to be based on a flat rate or adjustable on the actual quantum of loan ?One of the reasons for the pause in complaint handling timescales is for the FCA to assess the situation and come up with a way for eligible complainants to be “compensated in an orderly, consistent & efficient way”.
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