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Did you finance a car in the past and suspect you might have been mis-sold a discretionary commission arrangement? You're not alone. Thousands of Canadians are discovering they're entitled to reclaim compensation. But before you sign up with a third-party claims company, read this comprehensive guide from Parkers. We'll walk you through everything you need to know, empowering you to claim directly and potentially save significant fees.

What is Discretionary Commission and Why Was it Mis-Sold?

Discretionary commission is a bonus paid to car dealerships based on the price they sell a vehicle for. Historically, lenders allowed dealerships significant freedom in setting car prices, leading to potential conflicts of interest. Dealers might have inflated prices to earn higher commissions, effectively passing those costs onto you, the consumer. The Financial Conduct Authority (FCA) in the UK (and similar regulatory bodies in Canada) have ruled that these arrangements were often mis-sold, as they weren't always transparent and didn't prioritize the consumer's best interests.

Are You Eligible to Claim?

You may be eligible to claim if:

• You took out car finance between April 2007 and December 2020.
• The finance agreement included a discretionary commission arrangement.
• You paid more for your car than you would have if the commission hadn't been factored in.

Even if your finance agreement ended some time ago, you still have the right to claim. However, there are time limits, so don't delay!

How to Claim Your Car Finance Commission – Directly!

Here's a step-by-step guide to reclaiming your money:

1. Gather Your Documents: Collect your finance agreement, any correspondence with the dealership, and proof of purchase.
2. Contact Your Finance Provider: Start by contacting the finance company that provided your car loan. Explain that you believe you were mis-sold a discretionary commission arrangement and would like to make a claim.
3. Formal Complaint: If the finance provider doesn't offer a satisfactory response, file a formal complaint. They are legally obligated to investigate and respond within a specific timeframe.
4. FOS (Financial Ombudsman Service): If you're still not satisfied after the finance provider’s response, you can escalate your complaint to the Financial Ombudsman Service (FOS). They are an independent body that can mediate disputes between consumers and financial institutions.

Why Avoid Third-Party Claims Companies?

While third-party claims companies promise to handle the process for you, they typically charge a significant percentage of your compensation – often up to 40%. By claiming directly, you keep 100% of what you're owed. The process can seem daunting, but with the right information and a little persistence, you can successfully reclaim your money without paying hefty fees.

Resources & Further Information

• Check your finance agreement for mentions of 'discretionary commission' or similar wording.
• Keep detailed records of all communication with the finance provider and dealership.
• Consult the Financial Ombudsman Service website for more information and guidance: https://www.financialombudsman.org.uk/

Don't let outdated practices cost you money. Take control and reclaim what you're rightfully entitled to!