Are you a car owner who financed your vehicle in recent years? A major car finance scandal is unfolding, and you could be entitled to compensation of up to £950! The Financial Conduct Authority (FCA) is launching a consultation on a widespread redress scheme after uncovering widespread misconduct in the motor finance industry.

What's Happened?

The FCA’s investigation revealed that many car dealerships were receiving secret commissions from banks and finance houses for selling car finance. This commission was often based on the interest rate charged to customers, meaning dealerships were incentivized to push for higher rates, even if they weren’t the best deals for you. Essentially, you may have been paying more than you should have been for your car loan.

The Problem with Commission

This practice, known as 'discretionary commission,' is now considered unfair. It created a conflict of interest for dealerships, as their priority shifted from finding the best finance deal for the customer to maximizing their own profits. The FCA believes this resulted in customers being charged higher interest rates than they would have otherwise been offered.

Who is Affected?

The redress scheme is likely to affect anyone who took out car finance between April 2008 and January 2020 and whose finance agreement included a discretionary commission arrangement. This covers a vast number of drivers across the Philippines and beyond.

How Much Could You Get?

The potential compensation payout could be substantial – up to £950 per person, although the actual amount will depend on the individual circumstances of each case and the amount of commission earned by the dealership.

What's Next?

The FCA is now consulting with the motor finance industry and consumer groups to determine the best way to implement the redress scheme. They anticipate the scheme will be rolled out in 2024. This consultation period is crucial to ensure the scheme is fair and effective for all affected customers.

How to Check if You're Eligible

• Review Your Finance Agreement: Look for any mention of 'discretionary commission' or similar terms.
• Contact Your Finance Provider: Ask them if your agreement was affected by the commission practices.
• Stay Informed: Keep an eye on the FCA website (www.fca.org.uk) for updates on the redress scheme.

Don't Miss Out!

This is a significant opportunity for car owners to potentially recover money they may have overpaid on their car finance. Take action now to check your eligibility and stay informed about the FCA's redress scheme. Protect your financial rights and ensure you receive any compensation you are entitled to.