For example, Ford Motor Credit tells a dealer that it was willing to lend Susan money at a 6 percent interest rate, but that they would pay the dealership $2,800 if the dealership could get Susan to sign an 11 percent loan. The borrower would never be told that the dealership was marking up the loan. The dealer and the lender would then split the expected profits from the markup, with the dealership taking the lion’s share.
