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Secret Commissions?

Date: Wed, 05/27/2009 - 01:19

Submitted by anonymous
on Wed, 05/27/2009 - 01:19

Posts: 202330 Credits: [Donate]

Total Replies: 2


Hi

This is my first thread as I have just joined today, and not too sure that I have posted in the correct forum.

My question is that I have discovered secret commissions have been paid and would like to know what I do?

I have a loan from Blemain/Finance which was arranged by Ocean/Finance who were the brokers. I knew there was a fee of ?1,750.00, broker fee payable to O/Finance but have received my Subject Access Request from B/Finance and there is information in there confirming a secret commission fee also has been paid.

Please could someone advise me on what to do next please.


Hi Nikorka
I didn't get your question clearly. Did you mean that Blemain Finance paid commission to Ocean Finance for your loan. I think that if these companies have aggrement betweeen them that a commission will be charged in addition to the brokerage, you have nothing to do unless the commission amount is charged from you.


lrhall41

Submitted by SC on Fri, 05/29/2009 - 05:08

( Posts: 3937 | Credits: )


You'd be surprised how many commissions are involved in various loan/financing transactions. Usually they are not required to be disclosed to you, nor are they illegal, unless you are directly charged for them.

For example, when you buy a car and the dealer obtains financing for you, the F&I dept can make very large commissions off of you buy jacking the interest rate. IE the lender might approve your loan at 5% (you'll never know what they actually approved...), but the F&I guy comes back and says "I can get you financed at 9%." The lender usually splits that extra 4% with the F&I, and he'd get 2% in his pocket as a commission for getting you to sign at a higher rate.


lrhall41

Submitted by DebtCruncher on Sat, 05/30/2009 - 10:44

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