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Thousands of people in the UK have been subject to undisclosed commission on financial products they have been sold, with many customers completely unaware the commission payments existed.
Reports have shown that the car finance industry is rife with secret payments and hidden commissions, meaning you could have been mis-sold your finance deal.
If you believe this to the be the case, Evans Hughes can help you recover compensation.
Hidden commissions occur when an agent, introducer, or finance broker sells you a loan or finance agreement from a bank or lender. In the case of car finance, it might be the car salesperson or dealership who brokers the finance deal.
If the car salesperson received a fee or commission for bringing the car finance deal to the bank, and the bank has not informed you of this, that is a hidden, secret, or undisclosed commission. The finance provider or bank must inform you of ALL of the fees within the transaction.
Below is a demonstration of the process:
You ➔ Car Dealership/Salesperson ➔ Hidden £££s ➔ Finance Provider/Bank
Even in this circumstance, a general statement that “a commission may be paid in certain circumstances” is not adequate enough. The car dealership must inform you at the point of the car sale how must the commission was. If they failed to do so, it is a form of fraud. Both the finance provider and the finance broker may be liable for potential claims.
In this sense, financial brokers like the car dealership, owe some duties to their clients, such as:
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Official reports from the Financial Conduct Authority have shown that the car finance providers have a habit of concealing the existence of any commissions offered by their brokers. In their investigation in regard to the mis-selling of Car Finance (PCP), they found that:
Out of the 122 car dealerships visited by mystery shoppers just 11 car dealerships confirmed that commission will be added on this type of deal.
This potentially leads to a huge conflict of interest. The car dealerships are supposed to be separate to the finance providers, but such discretion could lead to salespeople to adjusting interest rates in order to earn more commission from the deal. In essence, there is an incentive for the salesperson to broker a finance deal at a higher interest rate, to the detriment to the customer.
Some cases show that customers are being overcharged by over £1,000 in interest in order for the dealership to obtain a higher commission pay-out. The FCA estimates this could be costing consumers £300 million annually.
Out of the 122 car dealerships visited by mystery shoppers just 11 car dealerships confirmed that commission will be added on this type of deal.
In addition to this, the FCA found that alarming number of the PCP (Personal contract purchase) firms have been carrying out this process without any regulation. These finance brokers often act without any oversight from the FCA which not only means the customer is not protected, but is also illegal.
In relation to the hidden commission, your car finance deal may have been mis-sold if:
Evans Hughes make starting your secret car finance commission claim easy. We have a team of experts who are on hand to talk you through the process. There is no obligation to use our service after we have performed our initial checks, and none of the checks will affect your credit score.
If you are one of the thousands in the UK that might have been affected by the undisclosed commission scandal, contact one of the Evans Hughes team today and we will be in touch to talk you through the next steps.
There are no up front costs, and any payments to us will simply be deducted from your compensation award should your claim be successful.
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Pension transfers are a big decision and transferring out of a final salary scheme is rarely good advice. However, many people were advised to do that due to negligent financial advice. Evans Hughes are financial mis-selling experts and specialise in helping clients claim compensation when they have been given negligent financial advice to transfer their pensions.
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It has been estimated that around 50% of UK businesses use an energy broker to find them a competitive deal on their business energy. Unfortunately, an industry-wide problem is coming to light which shows that many companies have been mis-sold gas and electricity. Third parties are charging commissions that are not made explicitly clear from the outset, resulting in much higher energy charges.
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Push payment fraud is a very serious crime, and the victims can suffer financial loss and distress as well as loss of privacy. In many push payment scams, banks are reluctant to compensate. So, people can be left not knowing where to turn.
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