Discretionary Commission Arrangements - Complaints and Refunds

You do not need to use a Claims Management Company. You can make the claim directly to the lender and if they reject your complaint you can take it to the Financial Ombudsman Service free of charge, but you must do this within 6 months of the lenders Final Decision Letter.

MoneyBarn Refund

MoneyBarn is a vehicle finance company, claiming to be “one of the UK’s leading lenders of specialist car, van, and motorbike finance”. Founded in 1992, Moneybarn champions their ability to provide car financing options to customers with a low credit score and otherwise unable to receive loans from “mainstream lenders”. The Car Finance company also claims that it “makes every decision with customers in mind”.

What is Car Finance?

Car Finance is an immensely popular and lucrative industry, one that continues to grow all the time. Recently released figures from the Finance & Leasing Association reflect this, showing Car Finance to be a multi-million-pound industry. Members within the industry are recorded to have made over £37 billion worth of consumer vehicle finance deals in 2021 alone.

So why is car finance such a money-making industry? Essentially, most of us at some point or another find ourselves in a situation where we need to find the money to buy that all-important set of wheels. Whether it’s the need for a bigger car for a growing family, your old car is on its last legs, or anything in between- sometimes the need for a new car is there, but the money for it isn’t. In this situation, Car Finance allows people who otherwise would be unable to afford their vehicle the chance to pay off it off over several months or years.

What Car Finance options are available?

Car Finance allows customers to spread the cost of a car over a set period of time, and there are three main types of Car Finance to be aware of:

Personal Contract Hire (PCH)

Also known as leasing, Personal Contract Hire (PCH) is not dissimilar to hiring a car. If you opt for a Personal Contract Hire contract, you first pay an upfront deposit (this is often to the value of three-six months of repayment), followed by a fixed payment each month, and are able to use the car within the time the repayments are being made (once payments have finished, the car will be returned to the dealership).

This type of Car Finance contract tends to last for two to five years. Generally, the longer the contract, the lower the monthly payments. It’s important for customers to note that this type of Car Finance does not give them the chance to keep or gain ownership of the car at the end of the fixed contract period.

Hire Purchase (HP)

This type of Car Finance contract sees customers hiring their vehicle from a lender, similarly to a PCH. This is a commonly used Car Finance option, and this option uses the vehicle as security against the loan. Customers that choose HP have the choice to pay an upfront deposit for their vehicle (usually this is 10% of the vehicles value), followed by fixed monthly repayments.

Although this type of Car Finance can appear as an attractive option to customers, it is important to note that as the vehicle is used as security, failure to fulfil monthly repayments can result in repossession of the vehicle. Not only this, but this can also negatively impact your credit score.

Personal Contract Purchase (PCP)

Personal Contract Purchase (PCP) calls for customers to pay an upfront deposit on their vehicle (this is usually equivalent to 10% of the vehicles value). Following this, customers will pay monthly fixed repayments over an agreed period of time. The cost of these payments is calculated with consideration of the value of the vehicle, the APR (interest rate) and the projected drop in the vehicles value over time (value depreciation).

Once the agreed payment period has ended, customers have the option to finish their agreement and return the vehicle, to start a new payment plan with a new vehicle, or to pay to gain ownership of the vehicle they have been paying off. This is called the Guaranteed Minimum Future Value (GMFV) or “balloon payment”.

In the case that a customer chooses not to gain permanent ownership of the car, they will not end up paying the full value of the vehicle through their monthly repayments. However, if customers do choose to keep the vehicle, the “balloon payment” will mean that they are paying significantly more money overall than the actual value of the car. Customers should be aware of restrictions and guidelines surrounding the condition of the vehicle should they wish to return it to the dealership. These can include a maximum mileage, and charges for damages considered to be exceeding of general “wear and tear”.

Problems with Money Barn and other Car Finance companies

Car Finance is reportedly the second most complained about financial product by consumers. Despite its massive popularity, Car Finance accounts for over a third of financial product complaints. These complaints are made against Car Finance firms like MoneyBarn.


Investigations by the Financial Conduct Authority (FCA) have uncovered extensive evidence of the mis-selling of Car Finance, including Hire Purchase (HP) and Personal Contract Hire (PCH). Customers of Car Finance companies should be aware that they may have been mis-sold Car Finance or overcharged for the repayments on their vehicle.

Through these investigations, lenders have been exposed for incentivising brokers and car-dealers to overcharge customers - promising large commissions in return for charging customers overly high interest rates.

What is considered mis-sold Car Finance?

When a dealer or broker allows for a customer to be sold a car finance product that is not financially appropriate for them, this is considered to be mis-selling Car Finance. The Finance Conduct Authority (FCA)’s focus remains to be guiding customers of Car Finance companies to buy appropriate and better value Car Finance products. This means that Car Finance companies hold a duty of care to ensure that the deals customers are entering into are affordable for them. Despite their regulations being in place, often they are not met, and customers find themselves in uncomfortable financial situations.

Car Finance can be mis-sold in many ways, and it is important for customers to be aware of how these situations arise. If these seem familiar, you may have been mis-sold Car Finance.

  • Affordability Checks”, set in place to ensure that customers are able to repay their Car Finances agreements fully, may have been incorrectly or lazily assessed.
  • In some cases, customers may feel that the ownership of the car was not explained clearly to them when they entered into their Car Finance agreement. Often a third-party company will have ownership over the vehicle, so the knowledge of this is crucial to the finance package.
  • Customers may also have believed that the fixed monthly payments they were paying were gaining them ownership over the vehicle. As explained previously, the complex models of Car Finance often do not allow for customers to gain vehicle ownership, or otherwise require a “balloon payment”. If the circumstances of the Car Finance agreement were not made clear, customers have been mis-sold car Finance. This is so important for customers to understand, as often the “balloon payment” at the end of a repayment contract can come as a surprise, leaving customers unable to pay to ultimately own the car.
  • In some circumstances, customers may believe that they have been rushed or pressured by the lender/salesperson. The lender/salesperson may have not explained the full conditions of the Car Finance contract or may have been insufficiently trained to be able to do so.
  • Lenders/ salespersons also have a duty to be unbiased when selling customers Car Finance. They are not permitted to “recommend” particular Car Finance packages, and in the circumstance that this has occurred Car Finance has been mis-sold. Lenders/ salespersons should offer a range of options and present customers with the option of varied interest rates, deposit amounts and repayment schedules.
  • The FCA estimates that in 95% of all Car Finance deals, a commission model is present. In four out of every ten cases of Car Finance, inappropriately high interest rates correlate directly with higher commission earned by brokers. Despite this framework being banned in January 2021, many customers still are unaware that they were mis-sold Car finance due to this. If you took out a Car Finance loan before this date, the lender/salesperson may have failed to fully explain the commission model of the deal, and as a result you may have been mis-sold and be entitled to compensation or a refund.
  • Fines/ charges incurred due to breach of agreement may be disproportionate or unfairly imposed.
  • Damages charges may have been charged at a disproportionate rate in the case that a customer returns their vehicle at the end of their contract. “Wear and Tear” can often be subjective, so this is important to consider when assessing whether you may have been mis-sold.
  • Additionally, customers may submit a complaint if they are experiencing issues with the vehicle they are financing. Although this does not fall under the mis-selling of Car Finance, customers still hold the right to complain.

More about Money Barn

Money Barn openly advertises their willing to provide Car Finance to customers with a “bad credit score”. While this may appear to be a blessing for those who struggle to obtain loans due to a poor credit score, this allows Money Barn to charge disproportionately high interest rates, as options for these customers are limited. Some customers claim they felt their poor credit scores were “taken advantage of”, and that the Car Finance company were aware of the power they held in being one of the few companies offering finance for low credit score customers.

Some customers claimed that Money Barn incorrectly calculated their final settlement fee, and as a result their credit score was negatively impacted. In the case that Car Finance payments are unfulfilled, often regardless of who’s error is affecting the repayments, customers claim they often will receive black marks on their credit scores. This can leave many customers unable to complete other aspects of life, such as putting down an offer on a house.

Despite Money Barn’s promise to put customer experience first, many customers have reported that Money Barn employees are poor at communicating, and unwilling to fulfil their duty of care, even when prompted to do so by the Financial Ombudsman.

Many customers also complain that Money Barn was unsympathetic to their claims, unwilling to discuss or follow through on dept repayment plans, or acknowledge when they were unable to repay due to personal issues (such as bereavement).

Overall, many customers feel they were “preyed upon” and “treated disgustingly” by Money Barn. Many also claim they have received harassing and bullying messages demanding repayment from Money Barn, in the case that this is true, Money Barn will have broken the law. Financial law protects customers from harassment, only allowing Car Finance companies to contact customers when agreed upon by both parties.

Have you been mis-sold Car Finance? How can Redbridge Finance help you?

If the circumstances above are similar to your Car Finance situation, you may also be entitled to refunds or compensation. You can submit a claim if you have already finished paying for your Car Finance, or if you are still in the process of paying for your Car Finance. These claims can take months to process- during this time you must keep up with payments of your Car Finance, or you may face car repossession from your lender.

Car Finance companies have a duty to care to ensure that the package they sell you is deemed “affordable”. A loan is deemed as such only if a customer is able to repay the loan at the agreed rates without hardship, and with the ability to continue payments of other responsibilities (such as rent or everyday expenditure). If you find you are struggling to repay your Car Finance, and your financial situation has not significantly changed since obtaining your loan, you may have been mis-sold Car Finance.

Redbridge Finance helps customers who have been mis-sold Car finance. They are able to investigate to what extent the appropriate checks were carried out by Car Finance companies, and whether the duty of care was met. The team represents you and your claim, and in the case that a lender does not agree to refund or compensate, they will pass your case over to the Financial Ombudsman. Redbridge Finance keep you in the loop throughout the whole process and makes sure you are aware of your rights and entitlements.

If you believe you have been mis-sold, don’t financially suffer in silence- contact Redbridge Finance today by going to www.redbridgefinance.co.uk and signing up, and the team can assess if you have a claim.

Moneybarn Compensation

Moneybarn can be a great financial service, but like any other service, they can sometimes have issues that require outside help.

If you've encountered a problem with Moneybarn, you may be eligible for compensation by using Redbridge Finance. We specialise in helping people navigate through tricky situations caused by third-party services or products, and if you qualify for compensation from Moneybarn, we are the people to contact.

The process for applying for compensation is simple and straightforward. First, you will need to gather all relevant documents such as recent bank statements and payslips, and submit these to Redbridge Finance so they can assess your eligibility. If approved, then you must complete an online application form which contains details of your current situation and how much money you would receive upon acceptance by Moneybarn.

Getting assistance from Redbridge Finance when it comes to dealing with problems related to Moneybarn has several advantages. For one thing, they are experienced professionals who understand the ins and outs of the process better than most individuals could ever hope to do on their own. Plus, they will negotiate directly with Moneybarn on behalf of their clients in order to get the best possible outcome; this includes negotiating the amount of compensation offered by Moneybarn as well as ensuring that any outstanding debt associated with them is cleared up at the same time. So don't hesitate if you're ever faced with a problem related to Moneybarn – call on Redbridge Finance for help!

MoneyBarn were forced to give money back to customers

Moneybarn, a UK-based car finance company, was recently ordered by the Financial Conduct Authority (FCA) to pay back £29.1 million to customers who were mis-sold car finance products. The FCA found that Moneybarn had failed to properly assess the affordability of the products for its customers, leading to financial difficulties for many of them.

In response to the FCA's findings, Moneybarn has agreed to pay back the money to affected customers, as well as making additional compensation payments to those who experienced financial hardship as a result of their car finance. Moneybarn has also agreed to implement new processes and procedures to ensure that it complies with FCA regulations in the future.

The FCA's decision to force Moneybarn to pay back money to its customers highlights the importance of companies properly assessing the affordability of their products, and the consequences that can result from failing to do so. Customers who have been mis-sold car finance by Moneybarn are encouraged to contact the company to claim their refund.

It is important to note that MoneyBarn is a financing company that provides loans and financing options to consumers. As a lender, it is not uncommon for MoneyBarn or its parent company to create debt for consumers who take out loans or financing. This is a normal part of the lending process and is not necessarily a negative thing. It is up to the consumer to carefully consider their financial situation and ensure that they are able to responsibly manage any debt that they may incur.