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The Guardian - UK
The Guardian - UK
Business
Kalyeena Makortoff Banking correspondent

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

Car are parked on the forecourt of a Vauxhall dealership
Court filings claim the practice encouraged car sales staff to funnel contracts to specific lenders. Photograph: Justin Tallis/AFP/Getty

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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