Further to our blog on 20 November 2024 on Premium Finance issues arising in insurance matters we note that the Supreme Court will hear an appeal around motor finance that will be heard on 1 to 3 April. The Supreme Court are going to look at a very legal point about whether ANY commission obtained by a broker should be disclosed.
For insurance brokers the law is clear that where a commission added on to the net rate from a lender, then brokers must disclose the full amount of their commission to clients. The Supreme Court case will not change this requirement. Brokers can pass on the costs of providing finance but this needs to be for genuine costs incurred in handling a credit application. It is not for us to justify market practices around discretionary commission arrangements not being genuine and we reiterate that our commitment to be completely transparent with our customers in:
- The amount of credit being provided.
- The percentage of commission we are receiving on that credit
- The amount in pounds we are receiving as introducers
We are confident in what we do and how we act in providing premium finance. If you are unsure about whether you are being treated fairly, ask the question. If you are not happy talk to us.
