Latest news with #HirePurchase
Scottish Sun
2 days ago
- Automotive
- Scottish Sun
Mis-sold car finance average payout: how much could you get?
*If you click on a link in this story, we will earn affiliate revenue. MOTOR CLAIM Mis-sold car finance average payout: how much could you get? Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) LATER this month the UK supreme court is expected to rule on whether car finance dealers unlawfully charged millions of drivers secret commission. This means if you took out a car finance arrangement before 2021 you could be in line for compensation. Sign up for Scottish Sun newsletter Sign up In the build up to the ruling, the Financial Conduct Authority (FCA), the industry watchdog, is reviewing how it would implement a large-scale redress scheme. Lloyds Bank, meanwhile, have set aside £1.2 billion in potential compensation costs – with other lenders following suit. Check if you could claim for mis-sold car finance below What are mis-sold car finance claims? Most cars in the UK are bought on a finance agreement, like a Hire Purchase (HP) or Personal Contract Purchase (PCP) agreement. Before being outlawed in 2021, these agreements could be sold with 'discretionary commission'. This meant your finance provider was allowed to increase your interest rate and pocket the difference as commission. Drivers didn't know that they could have paid for a cheaper loan and that part of their monthly repayments were funding this commission structure. What is the average payout for mis-sold car finance? Until the matter is resolved in court, the exact compensation drivers can expect remains unclear. However, we do know the average driver could be due thousands. My Claim Group, a claims management company, estimates that the average driver could receive up to £4,000**. Separate information from the FCA also found that a £10,000 finance agreement on PCP or HP could have cost the average consumer £1,100 in additional interest charges. This information will likely play a role in calculating the compensation you will receive, alongside a few other factors. Check if you could claim for mis-sold car finance below What factors could affect my car finance mis-selling payout? A few individual factors will likely influence your car finance payout. This includes: The interest rate you received The discretionary interest charged might differ depending on your lender. A higher rate means you may have paid more in commission to your dealer, and this could mean you're due an increased payout. The length of the agreement When purchasing on finance, the length of the repayment period affects borrowing costs. Longer repayment periods typically mean lower monthly payments but higher overall borrowing costs. Shorter repayment periods, on the other hand, result in higher monthly payments but lower total costs. So, repayment plans can influence the total interest paid on your finance. A longer repayment period at a higher rate could mean you paid more in unfair commission. The size of the loan In addition to the length of the agreement, the size of the loan also plays a role in determining the total interest paid. A larger loan charged at a higher rate means you could have paid more in discretionary commission. Can I make multiple claims to increase my payout? Discretionary commission arrangements were commonly used before their ban in 2021. During this time, drivers may have entered into multiple finance agreements, each with its own hidden commission. This means you might be eligible to make multiple claims and receive multiple payouts. Check if you could claim for mis-sold car finance below How to apply for compensation You do not need to use a claims management company to make a complaint, you can do it directly via your lender and eventually the Financial Ombudsmen Service. My Claim Group work with a panel of solicitors and they work on a no win no fee***. This does mean if it's successful then they will take a cut of your total payout but you don't have to deal with the administrative hassle of claiming. The Law Firms they work with take between 18 % and 36% inc VAT of successful claims. The total amount you would be due to pay depends on the level of redress you have received. Check if you could claim for mis-sold car finance below My Claim Group is a trading name of the Claims Protection Agency Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 836470). *My Claim Group will undertake a free check at no cost to you on your behalf to assess if you may have a vehicle finance claim. **See link for the FCA reference, solicitor fee tables & average valuations: *** If you proceed, our panel solicitors work on a no win, no fee basis (subject to exclusions, for full details click on: Solicitor fees are up to 36% inc VAT. We receive a fee after a successful payout or a referral fee from your solicitor and this does not affect the compensation you will receive. You do not need to use a claims management company to make a claim; you can do this yourself for free by contacting the car dealership or finance provider and if that is not successful you can complain to the Financial Ombudsman Service.
The Irish Sun
2 days ago
- Automotive
- The Irish Sun
Mis-sold car finance average payout: how much could you get?
LATER this month the UK supreme court is expected to rule on whether car finance dealers unlawfully charged millions of drivers secret commission. This means if you took out a car finance arrangement before 2021 you could be in line for compensation. In the build up to the ruling, the Financial Conduct Authority (FCA), the industry watchdog, is reviewing how it would implement a large-scale redress scheme. Lloyds Bank, meanwhile, have set aside £1.2 billion in potential compensation costs – with other lenders following suit. Check if you could claim for mis-sold car finance below What are mis-sold car finance claims? Most cars in the UK are bought on a finance agreement, like a Hire Purchase (HP) or Personal Contract Purchase (PCP) agreement. Before being outlawed in 2021, these agreements could be sold Drivers didn't know that they could have paid for a cheaper loan and that part of their monthly repayments were funding this commission structure. What is the average payout for mis-sold car finance? Until the matter is resolved in court, the exact compensation drivers can expect remains unclear. However, we do know the average driver could be due thousands. Separate information from the FCA also found that a £10,000 finance agreement on PCP or HP could have cost the average consumer £1,100 in additional interest charges. This information will likely play a role in calculating the compensation you will receive, alongside a few other factors. Check if you could claim for mis-sold car finance below What factors could affect my car finance mis-selling payout? A few individual factors will likely influence your car finance payout. This includes: The interest rate you received The discretionary interest charged might differ depending on your lender. A higher rate means you may have paid more in commission to your dealer, and this could mean you're due an increased payout. The length of the agreement When purchasing on finance, the length of the repayment period affects borrowing costs. Longer repayment periods typically mean lower monthly payments but higher overall borrowing costs. Shorter repayment periods, on the other hand, result in higher monthly payments but lower total costs. So, repayment plans can influence the total interest paid on your finance. A longer repayment period at a higher rate could mean you paid more in unfair commission. The size of the loan In addition to the length of the agreement, the size of the loan also plays a role in determining the total interest paid. A larger loan charged at a higher rate means you could have paid more in discretionary commission. Can I make multiple claims to increase my payout? Discretionary commission arrangements were commonly used before their ban in 2021. During this time, drivers may have entered into multiple finance agreements, each with its own hidden commission. This means you might be eligible to make multiple claims and receive multiple payouts. Check if you could claim for mis-sold car finance below How to apply for compensation You do not need to use a claims management company to make a complaint, you can do it directly via your lender and eventually the Financial Ombudsmen Service. The Law Firms they work with take between 18 % and 36% inc VAT of successful claims. The total amount you would be due to pay depends on the level of redress you have received. Check if you could claim for mis-sold car finance below My Claim Group is a trading name of the Claims Protection Agency Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 836470). *My Claim Group will undertake a free check at no cost to you on your behalf to assess if you may have a vehicle finance claim. **See link for the FCA reference, solicitor fee tables & average valuations: *** If you proceed, our panel solicitors work on a no win, no fee basis (subject to exclusions, for full details click on: Solicitor fees are up to 36% inc VAT. We receive a fee after a successful payout or a referral fee from your solicitor and this does not affect the compensation you will receive. You do not need to use a claims management company to make a claim; you can do this yourself for free by contacting the car dealership or finance provider and if that is not successful you can complain to the Financial Ombudsman Service.
Malaysian Reserve
13-06-2025
- Automotive
- Malaysian Reserve
HLB and DCAP Digital Collaborate to Boost SME Lending and Financial Inclusion with Cutting-Edge AI
KUALA LUMPUR, Malaysia, June 13, 2025 /PRNewswire/ — Aligned with its continuous efforts to support the SME ecosystem and offer tailored financial solutions to empower business development, Hong Leong Bank ('HLB' or the 'Bank') has signed a Memorandum of Understanding ('MoU') with DCAP Digital Sdn Bhd ('DCAP Digital'), enhancing its SME lending solutions infrastructure and driving financial inclusion for underbanked communities in Malaysia. Founded in 2020, DCAP Digital specializes in providing transparent and fair credit solutions through its full-stack Lending-as-a-Service ('LaaS') platform, offering an ecosystem for capital deployment into high-quality, pre-vetted borrowers alongside innovative digital tools that ensure efficiency, transparency, and compliance to regulatory requirements. Through this collaboration, HLB aims to leverage DCAP Digital's expertise in LaaS solutions, and especially its proprietary AI-driven credit scoring engine designed for more accurate and inclusive credit assessments, combining them with the Bank's robust financial solutions and extensive reach within the consumer financing and mobility (motorcycles and EVs) sectors to provide tailor-made lending solutions that are catered towards the customers' unique business and financing need. In May 2025 alone, over 61,000 motorcycles were newly registered in Malaysia, underscoring the dynamic nature and consistent demand within this market, yet one of the significant challenges in motorcycle financing, particularly for underbanked segments, often lies in efficiently establishing robust credit profiles and streamlining the Know-Your-Customer (KYC) processes. 'This represents a big step forward for HLB in terms of enhancing our lending services, as we continuously look to streamline our financing processes to better serve our dynamic pool of business customers', commented Woon Siew Hoong, HLB's Head of SME Banking. 'Aligned with our brand promise of being Built Around You, we are committed to maintaining a comprehensive suite of banking solutions that are designed to suit our customers' diverse needs, while ensuring the solutions are deployed in an efficient and seamless manner. Our partnership with DCAP Digital is a major milestone in this journey, where we combine AI integration, digital innovation, extensive market penetration, and tailored financing solutions to provide a truly enhanced customer experience.' With this partnership with DCAP Digital, HLB will primarily look to support its growing pool of motorcycle dealer customers, assisting them with seamless loan application processing and accelerated access into the Bank's Dealer Hire Purchase Program. HLB will also leverage on DCAP Digital's ecosystem to provide dealers with other relevant financing solutions, including cash management solutions, bank acceptance, and trade line services. Sonia Ng, Co-Founder & CEO of DCAP Digital added, 'We are thrilled to partner with HLB to further our mission of promoting financial inclusion through AI-powered credit solutions. This collaboration merges HLB's financial strength with our technology-driven approach, promoting seamless experiences, smart SME transformation and sustainable growth across the motorcycle ecosystem.' The collaboration will also involve joint promotional activities, such as workshops, seminars, and marketing campaigns to amplify visibility within the motorcycle industry, and training sessions for dealers on application best practices. For more information, please visit
Yahoo
13-06-2025
- Automotive
- Yahoo
HLB and DCAP Digital Collaborate to Boost SME Lending and Financial Inclusion with Cutting-Edge AI
KUALA LUMPUR, Malaysia, June 13, 2025 /PRNewswire/ -- Aligned with its continuous efforts to support the SME ecosystem and offer tailored financial solutions to empower business development, Hong Leong Bank ("HLB" or the "Bank") has signed a Memorandum of Understanding ("MoU") with DCAP Digital Sdn Bhd ("DCAP Digital"), enhancing its SME lending solutions infrastructure and driving financial inclusion for underbanked communities in Malaysia. Founded in 2020, DCAP Digital specializes in providing transparent and fair credit solutions through its full-stack Lending-as-a-Service ("LaaS") platform, offering an ecosystem for capital deployment into high-quality, pre-vetted borrowers alongside innovative digital tools that ensure efficiency, transparency, and compliance to regulatory requirements. Through this collaboration, HLB aims to leverage DCAP Digital's expertise in LaaS solutions, and especially its proprietary AI-driven credit scoring engine designed for more accurate and inclusive credit assessments, combining them with the Bank's robust financial solutions and extensive reach within the consumer financing and mobility (motorcycles and EVs) sectors to provide tailor-made lending solutions that are catered towards the customers' unique business and financing need. In May 2025 alone, over 61,000 motorcycles were newly registered in Malaysia, underscoring the dynamic nature and consistent demand within this market, yet one of the significant challenges in motorcycle financing, particularly for underbanked segments, often lies in efficiently establishing robust credit profiles and streamlining the Know-Your-Customer (KYC) processes. "This represents a big step forward for HLB in terms of enhancing our lending services, as we continuously look to streamline our financing processes to better serve our dynamic pool of business customers", commented Woon Siew Hoong, HLB's Head of SME Banking. "Aligned with our brand promise of being Built Around You, we are committed to maintaining a comprehensive suite of banking solutions that are designed to suit our customers' diverse needs, while ensuring the solutions are deployed in an efficient and seamless manner. Our partnership with DCAP Digital is a major milestone in this journey, where we combine AI integration, digital innovation, extensive market penetration, and tailored financing solutions to provide a truly enhanced customer experience." With this partnership with DCAP Digital, HLB will primarily look to support its growing pool of motorcycle dealer customers, assisting them with seamless loan application processing and accelerated access into the Bank's Dealer Hire Purchase Program. HLB will also leverage on DCAP Digital's ecosystem to provide dealers with other relevant financing solutions, including cash management solutions, bank acceptance, and trade line services. Sonia Ng, Co-Founder & CEO of DCAP Digital added, "We are thrilled to partner with HLB to further our mission of promoting financial inclusion through AI-powered credit solutions. This collaboration merges HLB's financial strength with our technology-driven approach, promoting seamless experiences, smart SME transformation and sustainable growth across the motorcycle ecosystem." The collaboration will also involve joint promotional activities, such as workshops, seminars, and marketing campaigns to amplify visibility within the motorcycle industry, and training sessions for dealers on application best practices. For more information, please visit View original content to download multimedia: SOURCE Hong Leong Bank Sign in to access your portfolio
