The Motor Finance Industry’s Claims of Damage Debunked: Commission Disclosure Doesn’t Deter Consumers

In recent months, the motor finance industry has claimed that the fallout from the commission scandal—particularly the court rulings on the non-disclosure of commissions—would harm the sector, increase the cost of motor finance, and reduce consumer confidence. This resulted in the Rachel Reeves falling hook, line and sinker for the industry message, going as far as to seek to involve the government and deny justice to the tens of millions of motorists who have been affected by this latest financial mis-selling scandal.These dire predictions, however, have been thoroughly debunked, with real-world evidence now confirming what many have argued all along: full disclosure of commissions does not deter customers from purchasing vehicles.

These dire predictions, however, have been thoroughly debunked, with real-world evidence now confirming what many have argued all along: full disclosure of commissions does not deter customers from purchasing vehicles.

One of the strongest pieces of evidence comes from Malcolm Beattie, of MB Motors in Ballymena. In a recent statement, Mr. Beattie confirmed that full transparency about commissions, including their disclosure to customers, has had no negative impact on his business. Consumers continue to purchase vehicles, even with commission details laid bare. This testimony is a clear rejection of the motor finance industry’s unfounded scare tactics and a vindication of the principle of transparency.

Full Disclosure: A Sensible and Ethical Practice

For years, the motor finance industry operated under a veil of secrecy, with commissions, paid by lenders to dealerships, being hidden from customers. This lack of disclosure allowed dealerships and lenders to profit at the expense of unsuspecting consumers, leading to millions being overcharged on motor finance agreements. However, as highlighted in the Court of Appeal’s recent judgments, this practice was fundamentally unfair and in breach of legal principles.

The Court of Appeal has reinforced that customers are entitled to full transparency when entering into financial agreements. This includes being informed about any commissions paid to dealerships for arranging finance. This ruling isn’t just legally sound—it’s common sense. Transparency fosters trust between businesses and their customers and ensures that consumers can make informed financial decisions.

The Motor Finance Industry’s False Narrative

Despite the clear benefits of commission disclosure, the motor finance industry has attempted to paint a bleak picture of its consequences. Industry representatives have suggested that revealing commissions would increase the cost of motor finance, reduce competition, and even force lenders out of the market. These claims are baseless and have now been proven false.

Malcolm Beattie’s experience shows that consumers are not deterred by full disclosure. If anything, transparency reassures customers that they are dealing with an honest and reputable business. Rather than harming the industry, disclosure can strengthen consumer trust and promote a fairer market for all.

A Long-Overdue Change

The arguments for commission disclosure have always been compelling. Consumers deserve to know how their money is being used and whether the terms of their agreements are influenced by hidden financial incentives. The fact that the industry has resisted this change for so long speaks volumes about its priorities.

The recent Court of Appeal judgment has made it clear that the days of hidden commissions must come to an end. This isn’t just about compliance with the law—it’s about doing what’s right for consumers. The industry’s efforts to resist transparency have only served to delay the inevitable.

Conclusion

The evidence is now undeniable: full disclosure of commissions does not harm the motor finance industry. Malcolm Beattie’s confirmation that customers remain undeterred by transparency is proof that the industry’s fear mongering was baseless.

This outcome validates the Court of Appeal’s decision and highlights the importance of fair and transparent practices in the motor finance sector. It’s time for the industry to embrace these changes, rebuild trust with consumers, and move forward with practices that put customers first.

Transparency isn’t the enemy of the motor finance industry—it’s the foundation of its future.