- Landmark action is brought against three leading car finance lenders
- It’s claimed inflated interest rates were charged on deals over six years
- In return, car dealers and credit brokers are said to have got more commission
- Dealers were being incentivised without customers knowing about it, it is said
Three top car finance lenders could be forced to pay out almost £1bn over claims drivers were overcharged for their used car loans.
A landmark class action has been launched against Lloyds Banking Group-owned Black Horse, Santander and MotoNovo Finance, which are accused of slapping excessive interest on a million arrangements to the tune of nearly £1bn.
It’s alleged there was an anti-competitive network agreement between car dealers and finance providers that resulted in customers being charged higher interest rates without knowing about it.