Auto Amazon Links: No products found. Blocked by captcha.
UK motorists who purchased vehicles using finance may be eligible for billions of pounds in compensation after a test case ruling. Marcus Johnson, who bought his first car in 2017, was not informed that the car dealership, Trade Centre Wales, was paid 25% commission, which was added on to his payment. The hidden commission plus interest will now be repaid to Johnson, and he is set to receive over £3,200. The Court of Appeal made the landmark ruling in October, and there have been two other claimants in the case.
Trade Centre Wales and parent company FirstRand of MotoNovo Finance have not responded to requests for comment. Johnson said he was furious when he learned about the hidden commission charged on his car financing agreement. He would never use a finance agreement again, he said, adding that it was frustrating for people who needed financing, to be charged such large amounts of money without disclosure.
UK car finance providers may now have to set aside enormous amounts of compensation money for similar claims in the future. Johnson bought his car with a £4,600 fee from Trade Centre Wales, and the finance was provided by Cardiff-based MotoNovo Finance. The dealership commission was not disclosed to Johnson, and this type of commission arrangement is now deemed unlawful.
According to Martin Lewis of Money Saving Expert, who advised claimants in a similar matter, it is crucial to log your claim as soon as possible. Lewis said claimants did not necessarily need to go via a claims management firm, which would take a cut of the payout. Rip-Off Britain’s legal expert, Gary Rycroft, echoed this advice and urged people to ascertain whether their finance arrangements included a discretionary commission agreement and lodge a complaint with the company, if so.
The Court of Appeal said “burying such a statement in the small print which the lender knows the borrower is highly unlikely to read will not suffice”. Since 2021, discretionary commission arrangements have been banned by the Financial Conduct Authority. HD Law’s Kevin Durkin, who represented Johnson in the test case, believes this case is widespread, with many car dealerships and finance firms having operated in this manner.
In conclusion, UK car finance firms may now set aside vast amounts of compensation money for similar claims, following a landmark ruling by the Court of Appeal in October. Johnson, who was not informed of the commission paid on his car financing agreement, will receive over £3,200 in compensation. Money Saving Expert’s Martin Lewis and Rip-Off Britain’s legal expert Gary Rycroft advise claimants to lodge their claims with the appropriate companies, avoid claims management firms, and check their finance agreements
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found. Blocked by captcha.