Financial watchdog, the FCA, will ban car finance commission deals where the salesman gets more cash if he signs you up to an expensive plan.
As things stand, some car dealership and motor finance brokers are paid based on the interest rate drivers are charged. That means brokers get better rewards for signing you up to worse deals.
So the FCA banned it - with the new rules coming into force on 28 January 2021. FCA interim chief executive Christopher Woolard said: "By banning this type of commission, where brokers are rewarded for charging consumers higher rates, we will increase competition and protect consumers. "We estimate that consumers could save £165 million because of today’s action." The FCA said on a typical motor finance
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