Martin Lewis issues £1,100 car finance update to drivers who could be owed payout
Martin Lewis has issued a major update in the £1,100 car finance mis-selling scandal. The BBC Sounds podcast host, who is an ITV regular, spoke out as the Financial Conduct Authority (FCA) probe into car finance mis-selling continued at apace.
Martin has been raising awareness of the investigation and in a post on X/Twitter, he said today: "Motor finance misselling update: @TheFCA just announced while it'll announce it's ruling in May 2025 firms will have until December 2025 to deal with complaints."
The claims are for those who bought a motor vehicle on finance. This includes cars, vans, camper vans and motorbikes. The finance agreement had to be taken out before 28 January 2021 (and most likely after April 2007), Money Saving Expert said.
MSE said: "This is one reason for the rush – the sooner you log your complaint, the less likely it is you will be at risk of being timed out. There's a strong possibility you won't be able to complain about agreements made before 6 April 2007, as this is when the Financial Ombudsman took over jurisdiction of motor finance complaints, though exact rules will likely be part of the results of the FCA's investigation."
MSE explains the vehicle had to be for primarily personal, not business, use, and says you CAN reclaim on behalf of someone who has passed away. It DOES include Personal Contract Purchases (PCP), it DOES include hire purchase and CAN still claim if the car's now paid off.
You CAN claim even if you've already submitted a claim for diesel emissions, MSE said. MSE said: "The FCA estimates 95 per cent of car finance deals had a commission model, and 40% had the crucial 'discretionary commission arrangements'.
"If yours did, and it wasn't made clear – which it almost never was – we reckon you're likely to be entitled to money back when the FCA finishes its investigation and un-pauses complaints." If the FCA does decide that compensation is due, it isn't yet clear how much money drivers could potentially receive.
Its figures suggest drivers paid £1,100 more interest on a typical £10,000 four-year car finance deal when there was a discretionary commission arrangement.