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Another Case of Hidden Commissions – Car Finance

There is yet another series of cases emerging where hidden commissions led to higher interest charges than they would otherwise have been, had there been either no commissions, or had they been disclosed to the taker of the car finance. Two cases adjudicated by the Financial Ombudsman Service ruled recently that the claimant borrowers be recompensed by the finance company involved. The claim amounts were relatively small, at around £1,000 but this will lead to many claims being entered once FOS has decided what path to take; should only those entering claims be looked at, or should everyone affected be contacted and asked if they wished for a complaint to be made. This could be as large as the PPI scandal, according to estimates. The banks again will have to dig deep in compensation payments, potentially.

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