Owners of cars driven by 2.3 million people could be due £1,100 compensation

Richard Guttridge
·1-min read
Drivers in England who are on 'salary sacrifice car scheme' warned
-Credit: (Image: Reach Publishing Services Limited)


Drivers across the UK are being reminded they could be owed huge amounts in compensation if they bought their car on finance. Over two million people have so far come forward to launch compensation claims.

It surrounds finance deals on cars before 2021. Everyone who bought a car on finance before then has been urged to check if they are owed any money.

Consumer expert Martin Lewis has helped drive applications by creating an easy-to-use tool on his Money Saving Expert website. He's told anyone who had a finance deal before 2021 that it's worth checking.

READ MORE: £200 cost of living payments to enter bank accounts in October

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It relates to motorists who may have been overcharged for their loans through Discretionary Commission Arrangements they were not aware of. Drivers could be owed £1,100 on average and much more in some cases.

Mr Lewis has warned people to be wary of 'no win, no fee' adverts claiming to help with finance compensation. He has branded these "pointless" and claimed drivers who do get payouts would then lose half of it to these no win, no fee companies.

Mr Lewis said recently: “Turn on the radio or social media and you'll be hard pressed to miss ads pushing you to do a no win, no fee car finance claim. Yet do that and, if you're due a payout, you'll lose up to 50% of it. Pointless!

“Our free complaints tool - which I drafted after talking to lawyers, then confirmed with the big firms that they'd accept it and respond - does it for you.”

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