Commission disclosure

Introduction

If a credit broker (including a motor dealer) receives a commission then The Financial Conduct Authority expects [under CONC 4.5.3R] that any intermediary disclose the existence of commissions, fee's or other remuneration payable, in good time before a credit agreement or consumer hire agreement is entered in to. Discretionary commission models have been banned by the FCA as of the 28th January 2021.

CONC 4.5.4R goes on to say that:

At the request of the customer, a credit broker must disclose to the customer, in good time before a regulated credit agreement or a regulated consumer hire agreement is entered into, the amount (or if the precise amount is not known, the likely amount) of any commission or fee or other remuneration payable to the credit broker by the lender or owner or a third party.

The Financial Conduct Authority has made it clear that "commission" means any financial consideration.

What does Smartfish Motor Company do?

Smartfish Group Ltd T/a Smartfish Motor Company offers products and services from a range of Finance Companies, UK Vehicle Dealerships and Product Providers with whom we have commercial agreements in place. If a customer decides to take out an agreement with one of those lenders, the lender will typically pay Smartfish Motor Company a commission for the introduction. This commission does not affect the amount the customer pays on their agreement and any interest rate is set by the lender.

Smartfish Motor Company will always provide its customers with product information enabling them to make an informed choice about how to proceed.

Smartfish Motor Company maintains a policy of transparency regarding commission disclosure requests. If commission earnt could have a material impact on a customer's transactional decision, this will be disclosed up front.

Where a retail customer requests disclosure of potential commission earnings from funding partners by Smartfish Motor Company regarding the specific brokering of the deal under construction (before conclusion), under Consumer Credit Directive rules they are entitled to this information. Smartfish Motor Company will willingly provide this information to all customers.

Process

The existence of commission is communicated to all Smartfish Motor Company customers prior to taking a customer application. This is disclosed both in writing on our Initial Disclosure Document on submission of an enquiry and then again at the point of providing personal information to apply for credit.

Should a customer wish to understand the potential amount or the likely amount of commission payable by the lender, owner or third-party in relation to the finance they are taking out then this will be provided willingly in writing in line with the company's commission disclosure policy.

What to do if you would like to request Commission Disclosure?

In-line with legislation, if you would like Smartfish Motor Company to disclose any potential commission please make your request via contact details below.

Your request, once made, will be actioned by the Compliance department. A record of all commission requests and responses will be retained.

Alternatively, you can also contact us via the following methods:

In writing -- Smartfish Motor Company -- Unit  4b, Stag Industrial Estate, Altrincham WA14 5DW

By e-mail -- aftersales@smartfishgroup.co.uk

By Phone -- 0161 546 0400

If we cannot settle things to your satisfaction directly you may be entitled to refer your complaint on to the Financial Services Ombudsman Service or other arbitration & dispute resolution scheme. Details on how to contact will be provided on our final response.

Representative Example of Credit

We expect more than 51% of our customers to achieve this rate.

Loan amount: £12,000, APR: 12.9%, 60 monthly payments: £268.12, Deposit amount: £0, Loan term: 60 months, Total cost of credit: £4,807.20, Total amount payable: £16,087.20