Motoring Discussion > Car finance - is this the next PPI? Miscellaneous
Thread Author: Rudedog Replies: 2

 Car finance - is this the next PPI? - Rudedog
Martin Lewis recons it is and could cost the finance companies billions.

All of my cars were bought using savings and a bank loan so doesn't apply to me I think.

 Car finance - is this the next PPI? - Zero
In about 40% of car finance deals, there were hidden 'discretionary commission arrangements'. This is where lenders allowed brokers & car dealers to up the interest to increase their commission – so you overpaid, without knowing.

But you DID know, the principal sum, + the total sum payable, and the interest rate were all clearly spelled out in the front page summary of the finance4 agreement. As were the words "you can get it cheaper elsewhere"
 Car finance - is this the next PPI? - zippy
I know I am biased, but this pee's me right off.

Zero is absolutely right.

What's more, the FCA approved the way these worked at the time and are now saying that they're wrong!
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