MARTIN Lewis’ MoneySavingExpert has unveiled a new tool which could help motorists claw back thousands of pounds.
It comes after the Financial Conduct Authority (FCA) launched an investigation into whether customers were overcharged on historical vehicle finance loans.
1
Millions who bought a car, van or motorbike on finance before January 28, 2021, could be owed billions of pounds in total.
Now, Martin Lewis’ consumer website has launched a new tool to help individual drivers draft out a complaint.
Martin Lewis said: “The average payback will likely be over a grand.
“The big question, if the regulator rules as expected, is whether it’ll be single or double digit billions that’ll have to be paid back to people.
Read more in Martin Lewis
“I’d urge anyone who had car finance before January 2021 to read the guide and use the free tool as soon as possible to ensure if payments happen, you don’t miss out.”
What is the Car Finance Discretionary Commission Scandal?
The Car Finance Discretionary Commission Scandal affects those who bought a car, motorbike or van on finance before January 28, 2021.
After this date, city watchdog the FCA banned lenders from using “discretionary commission arrangements” (DCAs).
This meant brokers could no longer increase interest rates on car finance loans, which in turn saw their commission bumped up.
Most read in Money
Anyone who took out a vehicle on finance before this date could have been unfairly paying more than they should have.
The FCA has now launched an investigation to see how many people have been impacted.
Consumer expert Martyn James previously told The Sun “thousands upon thousands” of people may have been overcharged.
MSE’s website also has a useful checklist on who might be in line for money back.
How do I claim?
It’s not clear at this stage whether customer complaints will be dealt with on an individual basis or on a larger scale as the FCA’s investigation is yet to conclude.
Financing firms don’t have to deal with complaints until September 25, when the FCA is scheduled to report the findings of its investigation.
But, you should start the complaint procedure now in case a future time limit is put in place.
You can either use the MSE tool, which helps you draft a complaint email.
Or, you could complain to your car financing company direct.
In the complaint, you should ask whether you were overcharged due to your broker getting paid commission and ask the company to correct this if that is what happened.
If you’re not satisfied with the company’s response, you can take your complaint to the Financial Ombudsman Service (FOS) for free.
You don’t need to use a claims company throughout the process as these firms usually take a percentage cut of any payout you receive.
READ MORE SUN STORIES
In other news, Martin Lewis has revealed how families can get Ikea meals every week starting at just 45p.
Plus, why you should stop worrying about your credit score.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.
