Martin Lewis; financial, English journalist and founder of MoneySavingExpert.com spoke on the probability of vehicle owners being owed compensation.
Martin Lewis, financial expert, English journalist and founder of MoneySavingExpert.com; recently shed light on a significant issue affecting vehicle owners. During a segment on the Martin Lewis Money Show, aired on ITV, he revealed concerning practices within the car finance industry. Lewis pointed out that certain finance firms allowed brokers and car dealers to control interest rates, resulting in inflated charges and undisclosed commissions. This revelation has far-reaching implications for individuals who purchased vehicles before January 28, 2021, potentially entitling them to substantial compensation.
In response to these findings, the Financial Conduct Authority (FCA) has initiated a comprehensive investigation into unjust car finance commission practices. Lewis emphasised that this investigation could lead to billions of pounds being refunded to millions of overcharged consumers.
Do You Fit This Criteria?
If you purchased a vehicle using finance before January 28, 2021, you may be eligible for compensation if your finance agreement involved discretionary commission arrangements.
Despite the lack of clarity surrounding these arrangements, affected individuals may have grounds for reclaiming overcharged interest once the FCA completes its investigation.
To determine eligibility for compensation, individuals must meet specific criteria:
- Your vehicle was only used for personal use
- Before January 28, 2021, you obtained your finance
- You bought a vehicle using a finance agreement
Further Eligibility
Additional eligibility criteria may apply, such as reclaiming on behalf of deceased individuals or eligibility for specific finance types, like Hire Purchase or Personal Contract Purchases (PCP). Even if a vehicle has been repossessed or fully paid off, impacted individuals can still pursue compensation.
How to Claim
To begin the claims process, simply start by completing our quick online application.
The exact amount of compensation individuals may receive remains uncertain, with potential reimbursements ranging from full interest repayment to a percentage above a fair amount.
What Do My Car Finance Offer?
For those considering making a compensation claim, Barings Law offers legal expertise and assistance while, additionally exploring other lender practices that may warrant further claims, providing comprehensive support to affected individuals.
