Mis-Sold Car Loan Finance

The Bank of England’s Deputy Governor, Sam Woods, has stated that the Financial Conduct Authority’s (FCA) investigation into potentially unfair car insurance commissions is not expected to threaten financial stability.

In BNNBraking.com on the FCA investigation into mis-sold car finance, it is reported that Bank of England’s Deputy Governor, Sam Woods, does not foresee a threat to financial stability. However, he acknowledges the potential for significant conduct and finance ramifications with estimates of total liabilities reaching up to £8 billion. Despite the high stakes, it is reported that Woods emphasised the importance of detail in assessing the impact of different commission structures.

Mis-Sold Car Loans Compensation

Car Loans that are mis-sold due to secret commission earned by the dealer when arranging the finance has been in the news recently see our mis-sold car finance page.  As a leading law firm specialising in financial mis-selling claims R James Hutcheon Solicitors has yesterday been reported in The Sunday Times in relation to our client Alistair Chong who was charged an 11.4% interest rate on a £25,000 Audi A5, far higher than the current prevailing rates.  These financial arrangements highlight the lack of transparency in these finance car loan deals. Our Client who is currently awaiting the outcome of his mis-selling claim, underscores the need for greater industry transparency.

The Issue About Mis-sold Car Loan and Finance

The issue of mis-sold car financial mis-selling in the UK centre’s around  discretionary commission arrangements by lenders. These arrangements, now deemed unfair, allowed dealers to earn more commission by charging borrowers higher interest rates. The Financial Conduct Authority (FCA) has begun an investigation into these practices, and the Financial Ombudsman Service has ordered some banks to refund the difference between the rates borrowers paid and the lowest available rate at the time due to unfair discretionary commission.

The mis-sold car loan scandal

Reported in our previous article a further staggering statistic today reported in The Times Today that has confirmed the  looming investigation by the Financial Conduct Authority (FCA) could lead to a potential compensation payout totalling £10bn by the Banks.

It is reported that Numis considers banks, most notably Lloyds Banking Group, could face a £10 billion compensation bill if the FCA found evidence of “widespread misconduct” and banks were ordered to refund higher repayments. However the  Royal Bank of Canada analysts estimated the figure could be between £2 billion and £8 billion.

Make a Claim for Mis-Sold Car Loans

There is little question that customers have been over-charged by the manipulation of the interest rate and secret commissions paid by the lender to the car dealer without the customer’s knowledge.
Get in touch now with solicitor who can assist you.  However you can make the claim direct yourself without payment of any fee to a claims company or a solicitor, the choice is yours.  However if you feel you don’t have the time or just you rather let a specialist solicitor firm help you then contact us now to make that claim.

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