Since 6 April 2007, millions of consumers have turned to car dealerships like Arnold Clark when purchasing vehicles from manufacturers such as Ford. With a wide presence across Scotland and the UK, Arnold Clark is known for its extensive inventory, including models from Ford. However, you should understand that while Arnold Clark facilitates the sale and financing process, they are not the lender; they work with various finance providers who issue loans based on discretionary commission arrangements (DCAs). This setup has led to significant issues affecting car finance agreements, impacting an estimated 14 million agreements worth £8.2 billion (FCA estimate).
Ford Finance at Arnold Clark
When you purchase a Ford vehicle through Arnold Clark and opt for PCP or HP financing, the dealer arranges the deal but does not provide the loan itself. Instead, they partner with multiple lenders who may offer finance products based on DCAs. These agreements can lead to higher interest rates than necessary due to the dealership receiving a commission from the lender. Understanding how this arrangement works is key to identifying if your car finance agreement was affected by such practices.
Finding Your Lender
To determine which lender provided financing for your Ford vehicle purchased through Arnold Clark, you should carefully review your finance agreement documents. The lender's name and contact information are typically detailed in these documents. If you no longer have access to the original paperwork, contacting Arnold Clark might provide this crucial information. However, it is essential to direct any complaints or inquiries directly to the lender, not the dealer.
If you believe your car finance agreement was affected by unfair discretionary commission arrangements and resulted in overpayment of £700 on average (FCA estimate), you can complain directly to your lender. This process is free and does not require any involvement from claims management companies. You do not need a solicitor or lawyer, as the Financial Conduct Authority provides guidance for consumers to handle these complaints independently.
Sources and References
- FCA: "Statutory Instrument 2023 No. 658 The Consumer Credit (Finance Companies Providing Non-exempt Consumer Credit) Regulations 2023", https://www.legislation.gov.uk/uksi/2023/658/made
- Motor Finance Action Team (MFAT): "Understanding the Impact of Discretionary Commission Arrangements on PCP and HP Agreements", https://mfat.org.uk/resources/discretionary-commission-arrangements/
- Financial Conduct Authority: "Press Release: FCA publishes final rules to improve outcomes for consumers buying cars on finance", https://www.fca.org.uk/news/press-releases/fca-publishes-final-rules-to-improve-outcomes-for-consumers-buying-cars-on-finance