FCA suspends GAP ins sales

[AndyC160]

Porsche pcp is something like 11%, Audi is typically 8%ish and VW less...all different but all with VW finance. How does that work?

It's called capitalism, charging what the market will bear!

Yeah I get that...my comment was a bit flippant.

Porsche rates have always been higher. Previously only by about a % or so but recently over the last year or so they have got alot higher.

[Scooby_Doo]

I've seen all the news about these mis-selling claims but can't understand how they were mis-sold. Was there somebody holding a gun to the customers' heads to get them to sign ?????

It's a case of non-disclosure of the big commissions being paid to the sales people.

That's like suing Sainsburys because their milk is more expensive than Aldi ,
Can I sue Porsche for the non disclosure of the excess profit they made on my Macan ????

[Scooby_Doo]

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[Scooby_Doo]

Deleted

[crockers]

I've seen all the news about these mis-selling claims but can't understand how they were mis-sold. Was there somebody holding a gun to the customers' heads to get them to sign ?????

It's a case of non-disclosure of the big commissions being paid to the sales people.

That's like suing Sainsburys because their milk is more expensive than Aldi ,
Can I sue Porsche for the non disclosure of the excess profit they made on my Macan ????

Disclosure is "if you pay £y for Gap the dealer receives £x". Would that influence your decision? If so then by not disclosing the commission they have miss sold the product as you were not in possession of all the facts before making your decision.

[Scooby_Doo]

It's a case of non-disclosure of the big commissions being paid to the sales people.

That's like suing Sainsburys because their milk is more expensive than Aldi ,
Can I sue Porsche for the non disclosure of the excess profit they made on my Macan ????

Disclosure is "if you pay £y for Gap the dealer receives £x". Would that influence your decision? If so then by not disclosing the commission they have miss sold the product as you were not in possession of all the facts before making your decision.

Like I asked - can I sue my OPC for not disclosing the commission that they paid the salesperson ? Nobody was forced to buy GAP insurance, they must have been OK with whatever price they paid otherwise they would have refused to buy it.

[Wing Commander]

That's like suing Sainsburys because their milk is more expensive than Aldi ,
Can I sue Porsche for the non disclosure of the excess profit they made on my Macan ????

Disclosure is "if you pay £y for Gap the dealer receives £x". Would that influence your decision? If so then by not disclosing the commission they have miss sold the product as you were not in possession of all the facts before making your decision.

Like I asked - can I sue my OPC for not disclosing the commission that they paid the salesperson ? Nobody was forced to buy GAP insurance, they must have been OK with whatever price they paid otherwise they would have refused to buy it.

Different laws/rules apply to different products.

Financial services products, including various insurances, have a legal requirement to disclose charges & commission etc.

I work in this field. All charges must be fully disclosed upfront to the potential purchaser.

With insurances, it’s a legal requirement to disclose how much commission is paid to the selling/advising company, if the product is subsequently purchased.

I do get your point though, and have previously said to clients “A garage doesn’t tell you how much profit they’re making on the car they’re selling you, but we do fully disclose all charges and/or commissions relating to this financial product!”

On GAP insurance, would a customer think twice if the SE said for example “75% of this premium for GAP insurance is paid as commission to me/the Porsche Centre”? Would the customer be prompted to maybe shop around…?

[Scooby_Doo]

Disclosure is "if you pay £y for Gap the dealer receives £x". Would that influence your decision? If so then by not disclosing the commission they have miss sold the product as you were not in possession of all the facts before making your decision.

Like I asked - can I sue my OPC for not disclosing the commission that they paid the salesperson ? Nobody was forced to buy GAP insurance, they must have been OK with whatever price they paid otherwise they would have refused to buy it.

Different laws/rules apply to different products.

Financial services products, including various insurances, have a legal requirement to disclose charges & commission etc.

I work in this field. All charges must be fully disclosed upfront to the potential purchaser.

With insurances, it’s a legal requirement to disclose how much commission is paid to the selling/advising company, if the product is subsequently purchased.

I do get your point though, and have previously said to clients “A garage doesn’t tell you how much profit they’re making on the car they’re selling you, but we do fully disclose all charges and/or commissions relating to this financial product!”

On GAP insurance, would a customer think twice if the SE said for example “75% of this premium for GAP insurance is paid as commission to me/the Porsche Centre”? Would the customer be prompted to maybe shop around…?

Thanks for the explanation, still think it's a load of bull. I always assumed it was " Caveat Emptor".

[Bluesnose1812]

Like I asked - can I sue my OPC for not disclosing the commission that they paid the salesperson ? Nobody was forced to buy GAP insurance, they must have been OK with whatever price they paid otherwise they would have refused to buy it.

Different laws/rules apply to different products.

Financial services products, including various insurances, have a legal requirement to disclose charges & commission etc.

I work in this field. All charges must be fully disclosed upfront to the potential purchaser.

With insurances, it’s a legal requirement to disclose how much commission is paid to the selling/advising company, if the product is subsequently purchased.

I do get your point though, and have previously said to clients “A garage doesn’t tell you how much profit they’re making on the car they’re selling you, but we do fully disclose all charges and/or commissions relating to this financial product!”

On GAP insurance, would a customer think twice if the SE said for example “75% of this premium for GAP insurance is paid as commission to me/the Porsche Centre”? Would the customer be prompted to maybe shop around…?

Thanks for the explanation, still think it's a load of bull. I always assumed it was " Caveat Emptor".

It was until the American thing of suing all and sundry came in vogue.

[PJV997]

That's like suing Sainsburys because their milk is more expensive than Aldi ,
Can I sue Porsche for the non disclosure of the excess profit they made on my Macan ????

Disclosure is "if you pay £y for Gap the dealer receives £x". Would that influence your decision? If so then by not disclosing the commission they have miss sold the product as you were not in possession of all the facts before making your decision.

Like I asked - can I sue my OPC for not disclosing the commission that they paid the salesperson ? Nobody was forced to buy GAP insurance, they must have been OK with whatever price they paid otherwise they would have refused to buy it.

+1. I have to agree with this sentiment that the buyer must take some responsibility despite the clear explanation from Simon.

You get a price presented for PCP and the buyer should understand PCP is a method of financing and be sensible enough to consider/shop around their finance options. Especially as a car is most people’s 2nd largest purchase.

I also think some of these compensation payments are way out of line with the true loss suffered by the consumer. I benefitted on one occasion, can’t remember the exact details but I bought a new M3 saloon in 2009 and used BMW finance. There had been a change in regulations and I think BMW finance only sent me an annual loan statement instead of a 6 monthly statement. A year or so after I had changed the car, I got a letter from BMW explaining their error with a cheque to repay ALL of the interest I had paid on the loan agreement that was approaching £5K. I didn’t know anything about it and suffered no loss at all and whilst the cheque was nice to receive, the compensation didn’t fit the ‘crime’.