For those who purchased a car prior to 2021, Martin Lewis might have some good news for you.
Thousands of pounds might be awarded to drivers who purchased a car, van, camper van or motorcycle between April 2007 and January 28, 2021.
The Money Saving Expert (MSE) founder has advised customers to take immediate action in order to prevent losing out on the reimbursement.
This coincides with the Financial Conduct Authority's (FCA) ongoing “major investigation” into an unfair, covert auto-finance commission.
The FCA is investigating if consumers have been overcharged for loan interest, meaning millions of people could get billions of pounds in interest refunds as a result of this probe.
Drivers who purchased their vehicles through Hire Purchase (HP) or Personal Contract Purchase (PCP) but not leasing have been instructed by Mr Lewis to file your complaint as soon as possible, even though the investigation might not be finished until May 2025.
He stated that the FCA will "probably" implement a large-scale redress programme next May, but he also mentioned that a "time bar" might be put in place once the investigation is over, which would stop some people from making claims after a specific amount of time.
In his latest newsletter, Mr Lewis said that the ruling increases your chances of getting compensation.
“A shock exploded through the car finance world on Friday, as the Court of Appeal issued a precedent-setting ruling favouring consumers over finance firms.
“That means this is now the law, though if it goes to a Supreme Court appeal, that could take a different view and overrule it. Simplifying somewhat.
“The verdict was unambiguous and said a car sales firm couldn't lawfully receive commission from a finance firm unless it had the customer's 'fully informed consent'. And to have this 'fully informed consent', the consumer would need to be told all material facts, including the calculations and amount of commission. Wow.”
You can file a claim for a car that is no longer in your possession or on behalf of a deceased person.
People can use a simple online tool provided by the MSE to see if they qualify to file a complaint and try to get compensation.
Brokers were encouraged by these discretionary commission arrangements (DCAs) to raise the fees that clients paid for their loans.
Customers have since voiced their dissatisfaction with the amount they were charged prior to the FCA's 2021 prohibition on the DCA practice.
Many customers were unaware of the procedure and did not bargain on the DCA because they believed the price was set.
Business automobiles and static caravans are not covered by the potential compensation – the compensation only applies to vehicles for personal use.
