Andy Mullaney’s Post

Following on the footsteps of yesterday's news regarding the FCA wanting to look at premium finance, today we have news that they want to have another look at car finance. Before January 2021, some lenders allowed dealers to adjust the interest rates they offered customers for car finance. Typically, the higher the interest rate, the more commission the dealer received. This was known as a discretionary commission arrangement. Discretionary commission arrangements created an incentive for dealers to increase how much people were charged for their car loan and the practice was banned in 2021. Now, what happens if you replace the word "dealer" for "broker"? My son had his motor insurance offered to him at 48% APR via the broker (finance provided by a premium credit provider). With interest rates at 5.25% (flat) what is a reasonable mark up these days to take into account how much work is done by any broker (and any default consequences, etc) to arrange the finance and what is too much and blatant profiteering? Fair value rules include the finance and a FVA should encompass all products - has it?

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Millions who bought a car or van on motor finance could be due a payout as major mis-selling investigation launched – what we know. Read the MoneySavingExpert article here: https://buff.ly/3ScKdPE #PCP #CarFinance

What is considered a “junk fee” by regulators has expanded to include “things that you wouldn’t consider a fee,” Husch Blackwell's Natalia Kruse said. Auto lenders, it's crucial to conduct a review of your contract and disclosure processes, as the CFPB expands its investigation of fees charged during the auto purchase and financing processes. Read more at Auto Finance News (log-in required): https://lnkd.in/g4wYZiKT #autolending #junkfees #consumerfinance

There's been a lot of news about the current Financial Conduct Authority investigation into discretionary commission agreements in the car finance world, and most of the news media don't seem to understand the issue. Most reporting tends to fall into one of two camps – evil banks or stupid customers – and neither is really correct. Here's our explanation on what's happening and what consumers can expect over the next few months. #carfinance #FCA #expertadvice

Oh yeah, this is going to be a big thing this year, PCP finance claims/Car Finance claims. How i understand it, if you had PCP or HP - and the interest rate was set by the Garage you were buying from, and they didn't tell you, it's for their commission (please correct me if i heard this wrong) its called "Discretionary commission arrangements" Then the FCA (still testing this till Septemeber) suggests you could be up for compensation - a bit like the PPI scandal... But this... this could be bigger. All our cars have been PCP - and one company I won't mention, we bought 3 brand new cars over 15 years, I have always questioned their Interest rate and how they plucked figures out of the air, as there was no literature around interest rate at their office. I've always had a gut feeling that one company was making it up all the time - but i want to be sure first, i have 3 claims with that to make! Check out this below - https://lnkd.in/epDxWdvw

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🚨 Important Legal Development in Motor Finance - Cases against Close Brothers and Firstrand head to Court of Appeal The FCA is launching test cases against major motor finance companies over alleged unfair practices in their commission models. These cases could reshape the landscape of motor finance, potentially leading to significant changes in how commissions are structured and impacting both companies and consumers. Stay informed and prepared for potential shifts in the industry: https://lnkd.in/e6X9aCzt #MotorFinance #FCA #LegalUpdate #ConsumerRights #FinanceNews

As Used Car Prices Fall, Here’s How to Get the Best Deal #finance #financial #finanzas #finanza

Following the Financial Conduct Authority’s investigation into GAP Insurance, it looks like there may be further investigation into discretionary credit arrangements on the horizon.   Learn more: https://lnkd.in/edQCP8-P   #CarLoan #Finance #CarFinance #Credit