Car finance - hidden commission payments
Discussion
DonkeyApple said:
alscar said:
Certainly all gone quieter and no updates on the MSE site either.
That said without chasing I did get my first reply from BMW the other day to apologise for the delay in replying to my original email and to ask for patience.
The FCA doesn't usually do anything unless told to by another regulator or a government. Sadly, many think it is some pro-active entity that is policing the financial markets but in reality it's more like a nightclub cleaner crew where doormen do a vague job of inhibiting the worst people, a couple of people are there to ask people to urinate in a certain place and not to do certain things but generally it's all about just cleaning up the blood, vomit and faeces after it's all happened. That said without chasing I did get my first reply from BMW the other day to apologise for the delay in replying to my original email and to ask for patience.
They're still struggling with the post 2016 environment where they can just sit doing nothing until the EU regulator changes something and instructs them to copy and post lockdown large numbers of staff now fake WFH.
So it would be very unusual and surprising if the FCA were to do anything without instruction and the only entity in regards to this one that would be in that position is really the Govt and that's now in election mode.
Now, it's worth noting that the real boom in the use of car credit happened post 2011 when the conservatives deleveraged the loony mortgage market to try and stabilise it by stopping people being able to borrow insane amounts that lenders knew would be close to impossible to pay back within a working life timeframe and which Govt knew would drive an asset inflation that would make everyone feel rich when they were in fact making themselves poorer. Within 12 months of the 2011 deleveraging of the property and BTL market the credit bulge had popped up in the car market. At the same time the consumer credit review shortly after was very odd as it gave a clear bill of health to car debt when it was using systems and tactics robustly outlawed in all other consumer lending markets because of their known toxicity.
In short, it's potentially a quick 'friend of the people' and 'it's all the money lenders fault' gig for the incoming Labour govt. They can claim they weren't responsible. They can blame Tory scum and filthy money lenders. It makes them a friend of the people and any cash paid out will be spent in seconds and in reality spent twice as the average punter will spend the amount they think they're going to get when they start the process and then when they do eventually get some money 6/12 months later they will have forgotten they had already spent it and spend it again.
So the FCA may go quiet now but I don't think it would be a huge surprise for the next govt to wake them back up on this one and deliver formal instruction.
I recall sitting down with the team on an M&A job about 8-10 years ago. we were on the buy side and working through the company financials. We'd seen a steady rise in sales then the 2 latter years shot up, and were trying to understand what was driving it and the longevity. Our view, which the bankers and equity investor was very strident about, was that cash released by way of PPI payments, was fuelling purchases, either outright, or sufficient to pay a decent deposit.
Castrol for a knave said:
I doubt it will be on the same scale as PPI, but it might create a filip in consumer spend.
I recall sitting down with the team on an M&A job about 8-10 years ago. we were on the buy side and working through the company financials. We'd seen a steady rise in sales then the 2 latter years shot up, and were trying to understand what was driving it and the longevity. Our view, which the bankers and equity investor was very strident about, was that cash released by way of PPI payments, was fuelling purchases, either outright, or sufficient to pay a decent deposit.
Agree. If anything were to happen it would be minuscule by comparison to PPI which was a swizz that was run for a huge period of time and attempted on almost anyone who sought to borrow any money. I recall sitting down with the team on an M&A job about 8-10 years ago. we were on the buy side and working through the company financials. We'd seen a steady rise in sales then the 2 latter years shot up, and were trying to understand what was driving it and the longevity. Our view, which the bankers and equity investor was very strident about, was that cash released by way of PPI payments, was fuelling purchases, either outright, or sufficient to pay a decent deposit.
But serial new car buyers might get more than a steak supper out of it. Not the sexpond bonanza of Covid or PPI free money giveaways though. And I'd guess fleet deals will be excluded as they would have been negotiated by very serious and professional fleet managers who would never have signed off on silly funding rates.
axel1990chp said:
They’re really pushing the boat out trying to get people’s details with this, aren’t they 
And people fall for this too
Once you know the mug's DoB you know what investment scam or worthless product to sell them. No point in trying to sell a solar install to someone under 60, no point in pitching secretly over leveraged and unprotected offshore money market funds via a neo investor app to the over 60s etc. And people fall for this too
Would be genuinely interesting if it could ever be calculated how much money the average PPI claim applicant lost overall in the 5 years after they first started giving away all their details and announcing they were about to get some fresh shopping tokens. I suspect the most difficult part of getting hold of all that money was getting a foot in the door before the recipient just spent it themselves without your assistance.
Anyway, the big downside to Martin Lewis offering his free form and raising the awareness of the possibility of some form of industry wide compensation is that it's going to give a 12-24 month free run for the mugs list builders. And these names are quite valuable as you'd only have been allowed the car finance if you had some form of job and a few £s in the bank so these are the names and details of the richest people on the planet, people allowed to borrow money that's not quite Wonga level junk debt.
A little peeved today. Of my 5 finance deals, the one that was most recent and bonafide has come back after almost 3 months, and said "no agreement found". Full stop / bye / good day / see you later.
Its nonsense.
I have since gone back to the dealer I bought my car from a few years ago and obtained the agreement number, as this was very recent. Have sent this back to Moto Novo and told them to sort their act out.
Not sure what the bigger scandal is, the DCA or the wriggling out of it by denying involvement.
Its nonsense.
I have since gone back to the dealer I bought my car from a few years ago and obtained the agreement number, as this was very recent. Have sent this back to Moto Novo and told them to sort their act out.
Not sure what the bigger scandal is, the DCA or the wriggling out of it by denying involvement.
Random_Person said:
A little peeved today. Of my 5 finance deals, the one that was most recent and bonafide has come back after almost 3 months, and said "no agreement found". Full stop / bye / good day / see you later.
Its nonsense.
I have since gone back to the dealer I bought my car from a few years ago and obtained the agreement number, as this was very recent. Have sent this back to Moto Novo and told them to sort their act out.
Not sure what the bigger scandal is, the DCA or the wriggling out of it by denying involvement.
Following PPI I am not at all surprised that financial businesses are purging their systems of any data that they are not legally required to keep. Its nonsense.
I have since gone back to the dealer I bought my car from a few years ago and obtained the agreement number, as this was very recent. Have sent this back to Moto Novo and told them to sort their act out.
Not sure what the bigger scandal is, the DCA or the wriggling out of it by denying involvement.
And even then for the older stuff where the finance deal is ended but they are legally required to keep the contract for a set period, I would not at all be surprised if they had changed processes to ensure that data was non-searchable - purge it from the searchable computer database and print it out and stick it in a box in a dusty archive.
You would have to be an idiot providing the person trying to make a claim from you with the evidence they need to make that claim if you don't legally need to keep it (or keep it in a searchable form).
TheK1981 said:
Had a reply from Ford, says they cant tell if my finance had a DCA, but they need more time. Someone from work bought a car the same day as me using the same finance scheme, her APR was 0.4 higher than mine, so I reckon they were amending things, they did say I can complain to the FCA already and have given me the details, but im hoping Martin Lewis is right and am holding on for now.
Northridge/BMW have said they need more time to get the documents - which I attached a scanned copy.
Northridge/BMW have come back again and said that they are unable to find my details even though I scanned a copy to them again, I wouldnt be surprised if they hold the same line hoping I go away or it times outNorthridge/BMW have said they need more time to get the documents - which I attached a scanned copy.
Gassing Station | Finance | Top of Page | What's New | My Stuff