Car loan scandal Mk 11

JohnC6

JohnC6

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You'd have thought that those supplying car loans would have learned the lessons..very heavy fines..from the late 1990s /2000 PPI scandal but no. Here we have Lloyds and a couple of other lenders paying secret upfront commission to dealers before people even take out loans to ensure they are 'pointed in the right direction' Quite recently, Rachel Reeves 'suggested' to the Supreme Court that it dismiss the claims on the grounds that compensation payments would weaken the stability in the finance sector as claims could amount to £44 billion. . A bit naughty. She's failed in that bid,though. The judges have said that it's too important to dismiss.

www.theguardian.com

UK lenders paid car dealers cash upfront that may have led to costlier loans

Exclusive: ‘Advance commissions’ said to total millions of pounds allegedly pushed customers to certain providers
www.theguardian.com www.theguardian.com

Re Reeves.
www.bbc.com

Chancellor Rachel Reeves' intervention in car loans case rejected

The UK's highest court has rejected the Treasury's attempts to intervene in the landmark case.
www.bbc.com www.bbc.com
 
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JohnC6 said:
Rachel Reeves 'suggested' to the Supreme Court that it dismiss the claims on the grounds that compensation payments would weaken the stability in the finance sector
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The PPI hassle actually had a positive effect on the finance sector, because it caused the major retail lenders to increase their reserves and pushed interest rates slightly upwards.

It seems possible that, if the same happens with the motor industry, it might just cause a "tidying up" of the primary lenders and gently depress retail borrowing rates, which could then boost car sales.

Mind you, that could just as likely be cancelled out by the strange determination of manufacturers to fall in with demands to halt production of internal combustion engines.
 
I heard a TV advert the other day for short term loans to tidy people over a short blip, it had an interest rate of over 1000%
 
Reeves has got to be the worst chancellor in living memory barring that one that worked for liz truss
 
seaodyssey said:
I heard a TV advert the other day for short term loans to tidy people over a short blip, it had an interest rate of over 1000%
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If the advert was being shown in the UK, I think you misunderstood.

There are very strict rules here about lending, especially to individuals in difficult situations. Try reading this and following the links...

www.gov.uk

Offering credit to consumers: the law

To offer credit to consumers you must be authorised by the Financial Conduct Authority (FCA) and join the Financial Services Register
www.gov.uk www.gov.uk
 
Short term loans all tend to have high interest rates as the rates quoted are apr, these loans often are 3/6 month loans which affects the rate shown. My wife worked for a big national loan company as cashier and tells me rates of people paying only half ish the payments then no more are high*, so companies aim to cover costs as soon as possible in the term.
* My wife also reports that many people people who defaulted on loans would soon be back expecting to get more loans.
 
seaodyssey said:
I heard a TV advert the other day for short term loans to tidy people over a short blip, it had an interest rate of over 1000%
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AndrewFlannigan said:
If the advert was being shown in the UK, I think you misunderstood.

There are very strict rules here about lending, especially to individuals in difficult situations. Try reading this and following the links...

www.gov.uk

Offering credit to consumers: the law

To offer credit to consumers you must be authorised by the Financial Conduct Authority (FCA) and join the Financial Services Register
www.gov.uk www.gov.uk
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Nope, I heard that too, something like 1030%, thought perhaps I had got it wrong.
 
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Nod said:
MSE (that's Money Saving Expert for the ignorant...)
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Not recognising acronyms isn't ignorant but to claim it is, might be described as such...
 
AndrewFlannigan said:
Not recognising acronyms isn't ignorant but to claim it is, might be described as such...
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Ignorance is not knowing something - including acronyms. Surprised you didn't know that...
 
tijuana taxi said:
I saw and heard the advert in question last Thursday afternoon.
The fact that two random people saw it probably means its true
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Give us a link to the source and we can all see it.
 
seaodyssey said:
They do exist, top of google search for payday loans.
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Now that's interesting. It would have saved time to have posted that first.
 
seaodyssey said:
I said I heard an advert on TV, my ears do not record URL's
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The point being that evidence prevents confusion, whereas a comment about hearing something means that the reader has to decide whether to believe your claim.

In this case, the claim seemed somewhat unlikely, so I provided a link to an apparently reputable site that published information that appeared to disagree with the claim. Then Pete provided a link which appears to back up the claim. Perhaps there's a lesson there regarding communicating with strangers.
 
AndrewFlannigan said:
The point being that evidence prevents confusion, whereas a comment about hearing something means that the reader has to decide whether to believe your claim.

In this case, the claim seemed somewhat unlikely, so I provided a link to an apparently reputable site that published information that appeared to disagree with the claim. Then Pete provided a link which appears to back up the claim. Perhaps there's a lesson there regarding communicating with strangers.
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Not a sorry I got it wrong in sight, perhaps a lesson in humility to be learnt there?
 
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