Drivers will save £165million a year under plans to ban greedy car salesmen from secretly overcharging customers so they can pocket more commission. As many as 500,000 car buyers have been ripped off by the scam, which sees ruthless brokers and salesmen increase interest rates to ratchet up the cost of a finance deal. As this raises the overall price of the deal, the dealers are paid more in commission. But customers are overcharged by an astonishing total of around £165million year, and many find themselves locked in a spiral of debt. The racket was uncovered following a two-year investigation by the Financial Conduct Authority (FCA), the Government’s finance watchdog. Drivers will save £165million a year under plans to ban greedy car salesmen from secretly overcharging customers so they can pocket more commission It found that car buyers could be paying £1,100 extra in interest on a typical £10,000 four-year loan due to inflated salesmen’s commissions. The FCA said the loophole ‘creates an incentive for brokers to act against customers’ interests’. Christopher Woolard, FCA executive director of strategy and competition, added: ‘We have seen evidence that customers are losing out due to the way in which some lenders are rewarding… Read full this story
- New Cars for 2020 and Beyond: What You Need to Know
- Will Your Car Get Stolen in Santa Cruz?
- Why the car finance industry needs to be a lot more honest
- Elon Musk Declares War on Dealer Network, Launches For-Real $35K Tesla Model 3
- BUDGET 2019: Tax cuts for 10 million Australians, free money for tradies and cash handouts that made Julie Bishop jump for joy - but there's NOTHING for students or first home buyers
- A third of buyers don't haggle on a used car
- Is Casper One of the 'Hot Spots' for Car Theft?
- Tesla Loses $702 Million as Sales Fall to Earth
- McLaren Speedtail Build Slot Pops Up For Sale At $5.5 Million
- Is Missoula a Favorite Spot Among Car Thieves?
Car dealers' finance scam to be banned with buyers set to save £165 million a year as interest rates that rake in commission are scrapped have 315 words, post on www.dailymail.co.uk at October 15, 2019. This is cached page on VietMaz. If you want remove this page, please contact us.