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Commission Disclosure

Introduction

If a credit broker (including a motor dealer) receives a commission then The Financial Conduct Authority expects [under CONC 4.53R] 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 offers 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. This commission does not affect the amount the customer pays on their agreement and any interest rate is set by the lender.

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

Hippo Motor Group 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 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 Motor Group 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 – hippo-compliance@hippomotorgroup.co.uk

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

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

Loan Amount Total Cost of Credit Representative APR 60 Monthly Payments Deposit Amount Loan Term Total Amount Payable
£7,500 £3831 19.1% APR £188.85 £0 60 Months £11,331

All offers are subject to change at any time, you must be 18 or over and finance is subject to status, vehicle availability and terms and conditions apply. We can introduce you to a limited number of finance companies, a commission may be received. Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could affect your credit rating and make it more difficult to obtain credit in the future. All prices correct at time of publication.

We purchase a wide variety of vehicles from all over the country to ensure the best quality and value for our customers, all of our cars go through a thorough inspection process and if they do not meet our standards we do not sell them. We endeavour to inform our customers (where possible) the provenance of the vehicle they are buying and as such we will always inform you if the vehicle has previously been either an ex fleet or hire car. Should your vehicle be an ex hire/fleet car please do not be concerned as we would never value this vehicle differently when you come to part exchange it and there is no difference to the CAP valuation either.

You should try and estimate the distance you will travel as accurately as possible to try and avoid excess mileage charges at the end of your contract.

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 t/a ‘Hippo Motor Finance’ is authorised and regulated by the Financial Conduct Authority. FRN 658076. We are a Credit Broker not a Lender and can introduce you to a limited number of lenders. We typically receive a fixed commission calculated by reference to the vehicle model, product or amount you borrow, for introducing you to a lender but this does not affect the interest charged on the agreement, all of which are set by the lender. All offers are subject to change at any time and are subject to finance approval.

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 info@hippomotorgroup.com . This does not affect your statutory rights.

We are a broker not a lender and our registered office is Unit 26 Trident Park, Trident Way, Blackburn, BB13NU.