Martin Lewis says millions of drivers could get £1,500 compensation and gives three-month warning

Richard Guttridge

3 July 2024 at 4:35 am·1-min read

Driving car on the motorway — -Credit: (Image: Getty Images)

Millions of drivers could potentially be in line for compensation payouts as part of a major investigation into car finance deals. A huge 1.7 million motorists have launched queries about their finance deals, with many more likely to come.

It's surrounds a major investigation into finance deals before February 2021 amid claims motorists were charged too much. Money expert Martin Lewis has urged anyone who bought a car on finance before that date to submit a query about their policy if they haven't already before the investigation concludes in September.

This can be done through his MoneySavingExpert website. The potential compensation payouts relate to Discretionary Commission Arrangements (DCA) on car finance deals, which may have resulted in some drivers being charged too much.

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The average payout could be £1,500 and some motorists could potentially get much more. Finance providers who may have to make payouts include Barclays, Santander, Black Horse, VW Financial Services, MotoNovo, BMW Financial Services and Ford Financial Services.

People unsure of their provider should be able to find details on bank statements or emails. This is the company regular finance payments were made to rather than the dealership the car was from.

Mr Lewis, who has attracted huge interest to the issue, said in an update: "The clock is ticking for the financial regulator, the FCA, to make its decision on car finance mis-selling. Since the investigation was announced in January, 1.7m complaints have been made via our free tool alone.

"That investigation is due to conclude on September 25, and as a conservative estimate, if the FCA rules in favour of mass payouts, that could equate to £750,000,000 being repaid for complaints made via the tool."

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