SECRET COMMISSIONS
If you have ever had a secured loan or mortgage, you may be owed money as they could have secretly paid commission to the broker; rendering this as mis-selling!
Many financial advisors, accountants and brokers have earned substantial commissions without informing their customers.
Financial advisors are required to:-
· Always ensure there is no conflict of interest in any advice they provide.
· Act in the best interest of the client at all times.
· Not make a profit from their clients that the client is not aware of
· Provide services of a professional standard
· Disclose any profit made to their clients
· Act in accordance with the standard reasonably expected of an independent Financial Adviser.
The payment of undisclosed commissions to financial advisors was a well-kept industry secret between the financial advisors and the major financial institutions. These commission payments were in addition to any arrangement fee that the clients had already agreed with the advisor. By accepting additional commission payments, that the client was unaware of, the financial advisor had ceased to act in the customer’s best interests. This arrangement allowed the advisor to make financial gains from the recommendation of products or services that may not have been right for the client.
If you feel that you have suffered financially from such an arrangement then please contact The Associate Law Firm today, our team of financial mis-selling experts will quickly establish if you have a claim. All you have to do is provide some brief details of any lenders you had credit with. Then we can start investigating on your behalf.
Is there a time limit on such claims?
For the best chance of success for a claim on your behalf, the agreement should either still be active or you should have finished paying for it within the last 6 years.
If you are unsure whether your particular case is eligible, don’t worry! We can still make an enquiry on your behalf.
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More often than not, undisclosed commissions paid by your mortgage or secured loan provider must be repaid as compensation to you. These commission payments were typically 10% of the mortgage or loan value. If you took a loan with any of the leading lenders, you will probably qualify for a return of that commission and any interest that has accrued.
Hidden Car Finance Commission Claims
If you have bought a car through a finance deal, you could be one of the thousands in the UK to be owed compensation due to hidden commission fees. Find out today if you can claim.
Thousands of people in the UK have been subject to the undisclosed commission on financial products they have been sold, with many customers completely unaware the commission payments existed.
Reports have shown that the car finance industry is rife with secret payments and hidden commissions, meaning you could have been mis-sold your finance deal.
Secret commission in Car Finance Deals
Official reports from the Financial Conduct Authority have shown that car finance providers have a habit of concealing the existence of any commissions offered by their brokers. In their investigation in regard to the mis-selling of Car Finance (PCP), they found that:
Out of the 122 car dealerships visited by mystery shoppers, just 11 car dealerships confirmed that commission will be added to this type of deal.
Was my Car Finance Mis-sold?
In relation to the hidden omission, your car finance deal may have been mis-sold if:
- The car salesperson did not fully explain they would receive a commission on the sale of the car
- The lender/bank did not fully explain the commission
- The salesperson skipped through the car finance agreement Terms & Conditions
- The customer felt pressured into the finance deal and was not given a range of options
- The PCP payments were unrealistic and no finance credit checks were carried out.
In June 2020 the FCA banned commissions linked to car finance deals outright. This means that car finance brokers won’t be allowed to charge a commission based on the interest rate offered from January 28th 2021.
You are still able to claim compensation if you believe the commission was hidden from you in a previous car finance deal.
If you are one of the thousands in the UK that might have been affected by the undisclosed commission scandal, contact a member of our team today and we will be in touch to talk you through the next steps.
There are not upfront costs, and any payments to us will simply be deducted from your compensation award should your claim be successful.