'All' drivers could get compensation as major car finance scandal update issued

'All' drivers could receive huge compensations following a major scandal update. Drivers have until mid-December to register car finance complaints and m illions more drivers could be in line for compensation over commission mis-selling.

The financial regulator is investigating whether drivers who took out car finance with a so-called discretional commission agreement in place, could be owed thousands of pounds back each. Drivers will now be given a two-week extension until mid-December to complain to the FCA about commission abuse.

The changes come after a recent Court of Appeal ruling moved in favour of consumers. BBC and ITV star Martin Lewis shared on social media: "While not specified in its announcement, I've had it confirmed this applies to ALL car finance commission complaints, not just the Discretionary Commission Arrangements (DCAs) complaints previously covered.

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"It signals that the FCA is paving the ground to in future broaden the scope of its car finance investigation, so not only at the 40 per cent of past claims that had DCAs (where dealers could increase their commission by increasing interest) but all commissions including fixed commissions." Mr Lewis added that "almost everyone" could see money returned to them with this also including drivers who were previously rejected under the DCA complaints process.

The changes mean the number of drivers impacted by the commission scandal could “potentially more than double”. Mr Lewis warned that the FCA ruling could have a lasting impact on car financing in the UK with the sector under “substantial threat”.

He commented: “For 'fixed' commissions, this isn’t about the FCA, it all strongly swings on if the Supreme Court upholds the Court of Appeal ruling (assuming it accepts the appeal to it, which the FCA has urged it to do, and to do at speed). That’s the key to if the FCA will broaden its scope.

“These are provisional first thoughts, bashed out at speed, obviously there's more work to do, but it is big.” The FCA added that motor finance firms will need to use the extended time to ensure they have the resources to issue final responses to complaints before the end of the proposed extension."

The financial regulator is investigating whether drivers who took out car finance with a so-called discretional commission agreement in place, could be owed thousands of pounds back each