Why Your Car Finance Refund Is Taking Much Longer Than Expected
If you paid for a car on finance between 2007 and 2021, there is a high chance you were overcharged by hundreds or even thousands of pounds. A major investigation into hidden commissions promised a massive payday for millions of drivers, but a new legal challenge from the banks has just pushed that finish line much further away. What's Going On For years, car dealers and lenders had a secret deal that allowed salespeople to choose the interest rate you paid. If they convinced you to sign a deal with a higher interest rate, the lender paid the dealer a bigger "discretionary commission." This created a massive conflict of interest where the person selling you the car was incentivized to make your loan as expensive as possible. Imagine going to a mortgage broker who intentionally finds you a bad deal just so they can get a secret bonus from the bank without telling you; that is exactly what was happening on car dealership floors across the country for over a decade. The ...