Not upheld: alleged commission payment and interest rate arrangement between lender and dealer complaint against Black Horse Limited

Decision detail

Summary

Mr M complained that Black Horse may have paid commission to the dealer/broker arranging his motor finance and that his 4.9% APR interest rate may have been influenced by such arrangements. Black Horse initially indicated commission was paid but later provided internal records showing £0 commission during the June 2022 period when Mr M's PCP agreement was arranged. The ombudsman found the documentary evidence credible and verified the details matched Mr M's credit agreement. The ombudsman also found Mr M received adequate disclosure of all material terms in the signed credit agreement. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found Black Horse's documentary evidence credible and authentic, showing £0 commission was paid during the period of Mr M's agreement. The screenshot details matched the credit agreement precisely. Regarding interest rate and disclosure, the signed credit agreement clearly set out the product type, costs, and balloon payment, providing Mr M with all necessary information. Mr M's subsequent acceptance and taking delivery of the car indicated satisfaction with the terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website