Finance commission claw backs – Lawgistics client wins case against finance company claim

legal updates

In many cases some smaller dealers have been dropped with little or no notice by the finance companies.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

Recently a number of finance companies have been seeking to claim back finance commission payments. 

In many cases some smaller dealers have been dropped with little or no notice by the finance companies and are then expected to write a cheque for several thousands of pounds which the finance company believe is owed.

We have now had such a case go to the County Court and the Judge awarded in our clients favour.

The finance company tried to argue that there was a set of  ‘implied terms and conditions in the way they and the client did business by ‘custom and trade’, and it was to an ‘industry standard’.  The Judge was having none of this smoke screen and pointedly asked the finance company to produce a document which showed our client’s signature in acceptance of such terms.  No such document existed.

The case is encouraging since a number of finance companies have sought to imply they have been very successful in such claims before, but we have not seen any such results.

Connected Car FinanceReady to take the connected approach?

We’re here to ensure all used car dealerships deliver a better car finance experience for their customers. With over 4,000 approved dealer partners we ensure you are properly supported and connected with a range of flexible finance options, allowing you to lend and your customers to buy in complete confidence.

Dennis ChapmanIn remembrance of Dennis Chapman 1951 -2015Read More by this author

Related Legal Updates

Do I have to reply?

The lender writes to our member for assistance with paperwork, but our member decides to ignore it.

Have motor finance lenders scored an own goal?

A clear admission from two large motor finance lenders that they have no clue as to what their dealer networks are doing.

The finance industry focuses on durability, and misses the point!

There is plenty of sound legal authority that makes clear a buyer of a used vehicle must expect that faults will develop sooner or later.

SHOCK & HORROR! A finance company seeks to influence an expert opinion!

Any finance house thinking of or seeking to emulate such unconscionable conduct, risks not only judicial ire and sanction but also being named and shamed.

More of the same from the FCA

Dealing with discretionary commission arrangements and concern that customers are not getting a fair deal on GAP (Guaranteed Asset Protection) insurance products.

While We Wait: Preparing for the FCA’s Review on Motor Finance Commissions

As anticipated, the FCA was not particularly helpful when questioned about the various issues of investigating complaints that were outside of the standard retention periods for documentation.

FCA Commission Review: Separating fact from fiction in the wake of scaremongering

Attend a complimentary seminar hosted by the FCA for first-hand information – Scheduled for Wednesday, 24 January 2024.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.