Martin Lewis has issued an update after warning everyone who bought a car before 2021 that there could be ‘billions’ owed.
Yep, the nation’s favourite Money Saving Expert has always got our backs to make sure we’re being smart with our cash. And he doesn’t just drop us an instruction and leave us, him and his team always seem to be there.
At least we can rely on something, right lads?
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So, many months ago, Lewis warned that those who purchased a car with a PCP or a finance agreement between 2007 and 2021 could be affected as drivers might be able to claim compensation due to the results of a Financial Conduct Authority (FCA) investigation.
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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.”
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And earlier today on X, Lewis issued an update on his warning as people have still got another year to get their complaints in.
He wrote: “Motor finance misselling update: @TheFCA just announced while it'll announce it's ruling in May 2025 firms will have until December 2025 to deal with complaints."
Lewis previously explained the whole thing to the BBC as he warned car owners:
“What was happening at that point is the lenders who organised the finance were saying to the car dealers 'the commission is discretionary,'” he said.
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“In other words, if you want more commission on these finance products - which is why they were being more heavily sold - you can simply increase the cost of the finance and you will get more commission.
“Many of them did so and it wasn't declared, so the consumer was not aware quite what enormous sums were being paid in commission to car dealers for this type of finance.”
He continued: "Clearly this means getting complaints in, if you were mis-sold, is going to be crucial.
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"It should be noted, part of the announcement is the FCA has put a freeze on firms handling complaints for now, so if you complain now they don’t have to do anything, but my provisional thoughts are it is worth it for people who think they’ve been mis-sold getting in a complaint now as a marker.”
So, if any of this applies to you, the best thing to do is just get your complaint in when you can.
Topics: Cars, Martin Lewis, Money, UK News
Jess Battison