The Financial Conduct Authority located significant use of such commission fashions — where fees are linked to hobby bills — can lead to “conflicts of the hobby” that aren’t accurately controlled by lenders.
On a £10,000 mortgage, the general interest has to be around £2, three hundred.
But a few dealers are charging £three, four hundred — a boom of nearly 50 consistent with a cent.
Jonathan Davidson, from the FCA, labeled the exercise “unacceptable” and introduced: “We will act to deal with damage because of this business model.”