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Feeling Shortchanged by Your Car Finance Deal? You Could Be Entitled to a Refund!

Millions of car buyers in Ireland may have unknowingly been mis-sold car finance. It's a complex issue, but understanding your rights and how to claim is crucial. This guide, brought to you by Parkers, cuts through the jargon and provides a clear, straightforward path to reclaiming potentially significant sums – all without needing to involve costly third-party claims companies.

What's Discretionary Commission and Why Was It Mis-Sold?

Many car dealerships receive a commission from lenders when they arrange car finance for customers. Traditionally, this commission was 'discretionary,' meaning the lender could choose to pay it or not. However, the Financial Conduct Authority (FCA) in the UK (and its equivalent regulations impacting Ireland) has ruled that dealerships should have disclosed this commission to customers. Failure to do so is considered mis-selling.

The core issue is transparency. If you weren't told about the commission, you may have paid more for your car than you should have. The dealership might have inflated the interest rate or added unnecessary fees to compensate for the lost commission, effectively passing the cost onto you.

Am I Eligible to Claim?

You might be eligible if:

• You took out car finance between April 2010 and January 2021 (although claims can still be made outside this period in some circumstances).
• You weren't clearly informed about the discretionary commission arrangement.
• You believe you paid more for your car as a result of the mis-selling.

How to Claim Your Car Finance Commission Back – A Simple Guide

1. Gather Your Documents: Collect your finance agreement, any correspondence with the dealership, and proof of purchase.
2. Contact Your Dealership: Start by contacting the dealership directly. Write a formal letter (keep a copy!) outlining your claim and requesting a full breakdown of charges and commissions. Clearly state that you believe you were mis-sold car finance due to the lack of disclosure.
3. Contact the Finance Provider: If the dealership is unhelpful, contact the finance provider directly. They are also responsible for ensuring fair treatment of customers.
4. FCA Complaint (if needed): If you're still not satisfied, you can lodge a complaint with the Financial Conduct Authority (FCA) in the UK. While based in the UK, the FCA's rulings often have implications for Irish consumers due to cross-border financial services. You can find their complaint process on their website.
5. Consider Legal Advice (if complex): For more complex cases or if you're struggling to navigate the process, consider seeking legal advice from a solicitor specializing in financial claims.

Why Avoid Third-Party Claims Companies?

While third-party claims companies promise to handle the process for you, they typically take a significant cut of your compensation – often up to 30% or more. Claiming directly is almost always more cost-effective. This guide provides you with all the information and steps you need to pursue your claim yourself.

Don't Delay – Time Limits Apply!

There are time limits for making claims, so don't delay. Start gathering your documents and contacting your dealership today. Reclaiming your mis-sold car finance commission could put significant money back in your pocket!