Martin Lewis explains how to claim car finance mis-selling compensation as FCA predicts payouts worth up to £950
Financial Expert Martin Lewis said that a financial regulator said that the industry could pay £ 18 billion in compensation, and advised the next steps for drivers with incorrectly sold vehicle loans.
The financial behavior authority launches a compensation consultancy to determine how much it is paid to millions of people who pay more interest than they know.
On Friday, August 1, a Supreme Court decision found that lenders were not responsible for the secret commission payments in automobile finance plans, which means that most of the allegations would not continue, but only the most serious claims would be suitable for compensation.
However, the automobile financing, which is not part of the Supreme Court decision, announced that many cases in a separate yarn of the wrong sales case are still likely to receive payments.
Am I suitable for the compensation plan?
Mr. Lewis explains that the automobile financing wrong sales case is “two yarns .. Mr. Lewis said that the ambitious commission regulations (DCAS), which he said would be the main form of compensation, would be the main form of compensation.
“The person whom most people complained about was not involved in the Supreme Court decision, but something in this decision would continue to wait if it caused a Wobbler for DCAs, Le said Lewis.
The DCAs were banned in January 2021, so before then, it is likely that anyone with personal contract purchasing (PCP) or rental purchasing (HP) agreements are likely to accept one unknowingly.
“When you go to a car broker or seller and increase the amount of interest you are accused of increasing the amount of commission without telling you,” Lewis said.
Those with PCP or HP agreements are likely to receive compensation within the scope of this schema ”.
However, Mr. Lewis says that it is not possible to receive compensation for those with 0 percent interest or the commission. But for most people, compensation will be hundreds of pounds.
Another rope of the wrong -selling case is an element of the Supreme Court Case approved by the court – the other two are rejected.
This referred to the “non -fair” commissions, and Mr. Lewis added that it was more difficult to define because it was made on a case basis. The factors in payment may even include how vulnerable you are and therefore it is more unfair to be so high of the commission.
Since Lewis is done according to the situation and there is no blanket problem like DCA cases, it is unclear how the compensation plan will work for them.
What should I do next?
For those who are not sure whether they are suitable, Mr. Lewis recommends to make a complaint to see if there is a DCA.
“After complaining, if you are one of the people who have a letter that says that your vehicle finance company complained that it will not cope until December this year, this will definitely be delayed until next year,” he said.
FCA advises consumers who believe that they should complain now and advise the use of demand management companies (CMC) or legal firms, which may cost 30 percent of any compensation fee.
He said that lenders will have to communicate with customers and pay to consumers automatically, or consumers will have to choose a plan for compensation, that is to say that compensation would be “very simple to be done”. Therefore, CMCs and law firms can get 30 percent of compensation without any job.
Mr. Lewis’s money advice website Moneysaveexpert offers a free tool for DCAs that will make a template complaint for you.
How much can I be compensated?
FCA estimates that most people will receive less than £ 950 in compensation per agreement ”.
The final cost of a compensation plan, FCA, in a statement made before today, will depend on the latest design. It is estimated that the first payments will be made in 2026.
Lewis said that the maximum you can get for DCA cases is the entire commission you paid. The standard interest rate is more likely to be paid to the higher interest rate where you have been collected.
Lewis means that interest in the original amount of the loan is calculated in the original amount of the loan.
“Very high probability, in 2026 at a point on hundreds of pounds of a pile of this, they are more interested than they should take back a lot of people who have the optional commission arrangement,” he said.
However, the expert warned that the industry could “fight this forcibly ,, before he called on industrial members to accept“ fair reconciliation ”.
