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UK lenders paid car dealers cash upfront that may have led to costlier loans

Exclusive: ‘Advance commissions’ said to total millions of pounds allegedly pushed customers to certain providers

UK lenders paid “advance commissions” to car dealers that may have encouraged them to push costlier loans on to consumers, legal filings linked to the motor finance scandal reveal.

Court documents seen by the Guardian show that lenders, including Lloyds Banking Group, have paid commission to individual dealerships in lump sums upfront, which campaigners say total millions of pounds.

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Source: https://www.theguardian.com/business/2025/feb/21/uk-lenders-car-dealers-commission-payments-upfront

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