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Given the way the "unfair relationship" provisions of section 140A of the Consumer Credit Act are drafted, there was some justification for the Supreme Court finding an implication of unfair overcharging in the finance company being able to pay 55% of its charges as dealer commission. However, against a backdrop finding that, apart from that sort of exceptional case, lenders and dealers were free to agree what commissions should be paid without the agreement of the customer, the FCA setting the compensation tripwire at 35% of charges seems too low a threshold.

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