SANTANDER and Lloyds face a new
The claim, filed at the
The claim alleges that between 2015 and 2021 consumers were unknowingly charged higher interest rates "due to a network of anti-competitive agreements between providers of motor finance and automotive dealers", where car dealers were given greater commission in return for getting customers to agree to finance deals that charged a higher rate of interest.
This so-called "discretionary commission" model was banned by the
The 'opt-out' action, which means all eligible borrowers are automatically included in the case, estimates that as many as 1m consumers might be affected, and the total value of those claims could reach nearly £1bn.
Lloyds said it was committed to ensuring customers have clear information to make informed decisions on the products they buy.
Santander and Motonovo Finance were contacted for comment.
(c) 2023 City A.M., source