Secret Commissions?
Date: Wed, 05/27/2009 - 01:19
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 tha
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.
You'd be surprised how many commissions are involved in various
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.
