Black Horse Refund: Reclaiming Hidden Commission from Your Car Finance
Black Horse Finance, a major UK car finance provider owned by Lloyds Banking Group, has been under scrutiny for its past use of Discretionary Commission Arrangements (DCAs). If you financed a car with Black Horse before January 28, 2021, you might be eligible for a refund. This paper explains what DCAs are, how they may have impacted your car finance agreement, and the steps to take to claim a refund from Black Horse.
What are Discretionary Commission Arrangements (DCAs)?
DCAs were a common practice in the car finance industry where dealerships or brokers had the flexibility to set the interest rate on your finance agreement. The higher the interest rate, the higher the commission they earned from the lender (in this case, Black Horse). This created a conflict of interest, as dealers were incentivized to inflate interest rates to maximize their profits, potentially leading to customers paying more than necessary.
Why You Might Be Entitled to a Black Horse Refund:
- Overcharged Interest: If a DCA was used in your car finance agreement, you might have been charged a higher interest rate than necessary, resulting in you paying more over the life of your loan.
- Lack of Transparency: DCAs were often not clearly explained to customers, meaning you might not have been fully aware of how the interest rate was determined or the commission the dealer received.
How to Claim a Black Horse Refund:
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Gather Your Information:
- Finance Agreement: Locate your car finance agreement with Black Horse. This document contains important details about your loan.
- Vehicle Details: Make, model, and registration number of the vehicle you financed.
- Dealership Information: Name and location of the dealership where you purchased the vehicle.
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Contact Black Horse:
- Online Complaint Form: You can find their online complaint form on their website: https://www.blackhorse.co.uk/ (Navigate to their "Contact Us" or "Help & Support" section.)
- Phone: Call their customer service team. Their contact number can be found on their website.
- Post: Mail your complaint to their customer service address, which can also be found on their website.
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Explain Your Complaint: Clearly state that you believe you were overcharged due to a DCA and provide all relevant information about your finance agreement.
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What to Expect:
- Acknowledgement: Black Horse should acknowledge your complaint promptly.
- Investigation: They will investigate your complaint, which may involve reviewing your finance agreement and contacting the dealership.
- Response: Due to the FCA's ongoing review of DCAs, Black Horse may not provide a final response within the usual 8 weeks. The deadline for responding to DCA complaints has been extended. Check their website for the latest information.
- Outcome: Black Horse will inform you of their decision and any redress they offer, which may include a refund of interest and charges.
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Escalating Your Complaint:
- Financial Ombudsman Service (FOS): If you're unhappy with Black Horse's final response, you can escalate your complaint to the FOS: https://www.financial-ombudsman.org.uk/
- Time Limit: You have a limited time to escalate your complaint to the FOS after receiving a final response from Black Horse. Check their website or your response letter for the exact timeframe.
Important Notes:
- Be Patient: The complaint process may take time, especially with the FCA's ongoing review of DCAs.
- Keep Records: Keep copies of all correspondence with Black Horse and the FOS.
- Seek Advice: If you're unsure about your rights or need support with your complaint, consider seeking advice from a consumer rights organization or a solicitor specializing in financial services.
References:
By understanding how DCAs work and following the steps outlined in this paper, you can increase your chances of receiving a refund from Black Horse if you were unfairly charged due to this controversial practice.