Not upheld: Motor finance commission (DCA) complaint against FCE Bank Plc trading as Ford Credit

Decision detail

Summary

Mr W complained to FCE Bank Plc about an undisclosed £235 commission payment between FCE and the broker who arranged his 2020 hire purchase agreement for a car costing £19,851.09. Mr W argued the undisclosed commission caused him to pay more in interest. The ombudsman found that while the commission was not disclosed, the APR of 1.2% was very low and competitive, and there was no evidence Mr W would have pursued alternative financing had he been aware of the commission. The complaint was not upheld as the ombudsman was not persuaded the overall relationship was unfair to Mr W.

The Ombudsman's reasoning

While undisclosed commission can create an unfair relationship, the Supreme Court judgment indicates this is not the sole consideration and broader circumstances must be assessed. The ombudsman found that the APR of 1.2% was very low and competitive, and there was no evidence Mr W would have acted differently had the commission been disclosed. The ombudsman was not persuaded Mr W would have obtained cheaper finance elsewhere, particularly for a new vehicle.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website