How It Works

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 Hippo do?

Hippo Vehicle Solutions Ltd offer products and services from a range of Leasing 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 Hippo a commission for the introduction, the commission we receive may be preset but can vary and impact the amount payable.

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

Hippo Vehicle Solutions ltd maintain 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 Hippo Motor Group regarding the specific brokering of the deal under construction (before conclusion), under Consumer Credit Directive rules they are entitled to this information.

Hippo Vehicle Solutions ltd will willingly provide this information to all customers.

Process

The existence of commission is communicated to all of Hippo’s customers prior to taking a customer application. This is disclosed both in writing on Hippo’s 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 Hippo to disclose any potential commission please make your request via the Hippo Help page. This page is dedicated to resolving any problems, complaints and frequently asked questions. By following this link you can make your request.

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 – Hippo Motor Group, Trident Park Trident Way, Blackburn, BB1 3NU

By e-mail – [email protected]

By Phone – 01254 956666

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

Based on a Hire Purchase (HP) agreement. We expect more than 51% of our customers to achieve this rate.

Loan amount

£7500

APR

18.9%

60 monthly payments

£188.16

Deposit amount

£0

Loan term

60 months

Flat rate

10.1%

Total cost of credit

£3789.60

Total amount payable

£11289.60

All pictures and/or photos and car descriptions on this site are for illustration and reference purposes only and are not necessarily the vehicle on offer. All offers are subject to change at any time and are subject to finance approval and vehicle availability. All prices correct at time of publication. E & OE.

Hippo Vehicle Solutions Limited t/a Hippo Finance is authorised and regulated by the Financial Conduct Authority. FRN 658076. Company number 06215364, registered company address – Unit 26, Trident Park, Trident Way, Blackburn, BB13NU. We are a Credit Broker not a Lender and can introduce you to a limited number of lenders. Subject to status and to UK residents only (excl. the Channel Islands). Individuals must be 18 or over. Guarantees and indemnities may be required. We typically receive a commission for introducing you to a lender, the commission we receive may be preset but can vary and impact the amount payable. Images for illustrative purposes only. Hippo Vehicle Solutions Limited t/a Hippo Finance is an Appointed Representative of AutoProtect (MBI) Limited for insurance distribution purposes. AutoProtect (MBI) Limited is authorised and regulated by the Financial Conduct Authority. Its firm reference number is 312143. You can check this at www.fca.org.uk

We endeavour to ensure that all information including the specifications and finance availability are accurate. Whilst we make every effort to display correct information we are aware that errors may occur occasionally. We are not able, therefore, to guarantee the accuracy of all information especially when given to us by third parties. If you do require clarification of some information you have seen on our website, please email us at [email protected]. This does not affect your statutory rights.

Our registered office is Unit 26 Trident Park, Trident Way, Blackburn, BB1 3NU.

When completing an application on this site we will automatically check your eligibility across a range of finance & leasing products to provide you with the best selection of options that we can. Below is a Representative Examples of our HP finance options for comparison, we expect more than 51% of customers to achieve the rates shown.

Representative Example Of Credit (Hire Purchase)
Hire Purchase (HP) Finance Example: Cash Price £12,480.00 Total Deposit £1,140.00. Total Amount of Credit £11,340.00. 60 monthly repayments of £284.50. Interest Charges of £5,730.00 Total Amount Payable £18,309.00. Annual Fixed Interest Rate of 11.1%. Representative APR 18.9%.