RE: Ii down???31 Mar 2025 09:57
"Compensation
Even if the judges agree with the appeal from car finance providers, lenders are still facing a hefty compensation bill.
That is because the FCA has already banned discretionary commission arrangements (DCAs), when the higher the interest rate on the loan, the higher the commission that was paid to dealers.
It said this provided an incentive for a buyer to be charged a rate that was higher than necessary.
It is considering setting up a compensation scheme for drivers who had these deals before the ban in 2021, although some drivers are going through the courts for redress.
Alex Neill, co-founder of Consumer Voice, which advises people on compensation, said the Supreme Court could agree with the Court of Appeal in saying all "secret" commission payments were unlawful.
"That would be huge and would be on the scale of PPI, with compensation payments running into the tens of billions of pounds," she said.
If not, then it still meant there could be compensation for 40% of car loan agreements with discretionary agreements.
"That is still going to be worth billions of pounds in compensation and over Β£1,000 per individual," she said."
https://www.bbc.co.uk/news/articles/cdjyjyx9kpro
DYOR