Martin Lewis warns millions of drivers who had cars before 2021
Martin Lewis has warned millions of Brits who bought cars before 2021 they could be owed thousands. Motorists who bought a car, van, campervan or motorbike between April 2007 and January 28 2021 could be eligible for thousands of pounds.
This comes amid an ongoing 'major investigation' from the Financial Conduct Authority (FCA) into hidden, unfair car finance commission. Mr Lewis has told drivers who bought their vehicle on Personal Contract Purchase (PCP) and Hire Purchase (HP) - but not leasing - to act "soon" to pocket the money.
The FCA is exploring whether customers have been overcharged on interest for loans. This investigation could end up handing billions of pounds of overcharged interest paid back to millions of people, the FCA has added in an update.
READ MORE: DWP urges state pensioners born before 1959 to come forward for quick and free £13,170
READ MORE: DWP sending letters to 60,000 people from Saturday 'demanding action'
READ MORE UK warned February 'snow events' looking more likely and could be days away
BBC and ITV star Mr Lewis said that the FCA will "likely" set up some type of mass-scale redress scheme next May, but added that a "time bar" may be introduced when the investigation is over, preventing some people from claiming back after a certain period.
Explaining the reason behind the huge payouts, MSE said: "In about 40 percent of car finance deals, there were hidden 'discretionary commission arrangements' (DCA). This is where lenders allowed brokers & car dealers to up the interest to increase their commission – so you overpaid, without knowing."
Sheldon Mills, executive director of consumers and competition at the FCA, said: “We are taking a closer look at historical discretionary commission arrangements in the motor finance market following a high number of complaints from customers, which are being rejected by firms.
“If we find widespread misconduct, we will act to make sure people are compensated in an orderly, consistent and efficient way." Money Saving Expert has put together an incredibly handy tool to put these complaints together, with templates that can draft your email for you.