MARTIN LEWIS has issued an urgent warning for drivers who could be owed thousands of pounds back from mis-sold car finance deals – and there’s a way to claim for free in just second.
The MoneySavingExpert has revealed that many car owners may have been mis-sold car finance without knowing it.
He advises avoiding tempting ads from “no win, no fee” firms, as they could take up to 50 per cent of any pay-out you might receive – a completely unnecessary cost.
Instead, Martin is urging everyone to use his free complaints tool, which was developed with the help of top lawyers and finance firms.
The tool allows you to file your claim without losing any money.
Since its launch, more than 2.3million complaints have already been submitted through it, and many users have praised its simplicity.
One happy claimant, Catherine, said: “Your online tool is brilliant.
“I have submitted six claims, yes six – and I did it only because of how easy, clear and simple you made it.”
Earlier this year, the Financial Conduct Authority launched a formal investigation into the mis-selling of car finance deals.
The FCA believes there’s a significant chance that widespread mis-selling has occurred, and it has begun to use its powers to gather evidence from firms.
A ruling was expected this month but has now been delayed until May 2025.
While the delay is frustrating, the FCA has indicated that this increases the likelihood of consumers getting their money back.
However, the finance companies are fighting the claims aggressively.
The investigation mainly focuses on something called Discretionary Commission Arrangements.
These were deals where car finance companies allowed dealers to secretly hike up interest rates for customers, rewarding the dealers with extra commission.
As a result, many drivers paid much more than they should have without even knowing it. It’s estimated that people could be owed an average refund of £1,100.
If you purchased a car, van, motorbike, or camper van on finance, you could be eligible for a refund.
This applies to finance agreements taken out between April 2007 and January 28, 2021, specifically for Personal Contract Purchase and Hire Purchase agreements.
The vehicle must have been for personal use, such as commuting, and not for business purposes.
Even if the finance is fully paid off or you no longer own the vehicle, you may still be able to claim.
Additionally, claims can also be made on behalf of someone who has passed away by their executor or beneficiary.
To check if you’re owed money, it’s important to submit a complaint as soon as possible.
Martin’s free tool can help you get started.
It checks if your policy included a DCA and, if it did, automatically registers a mis-selling complaint with the finance company.
Check Eligibility: If you purchased a car, van, motorbike, or camper van on finance between April 2007 and January 28, 2021, you may be eligible for a refund. This applies to Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements for personal use. Leased vehicles and Personal Contract Hire (PCH) agreements are not included.
Use Martin Lewis’ Free Tool: Avoid costly “no win, no fee” firms that could take up to 50% of any pay-out. Instead, use Martin Lewis’ free complaints tool, which checks if your finance policy included a Discretionary Commission Arrangement (DCA).
Submit a Complaint: The tool will automatically file a mis-selling complaint with your finance company if a DCA is found on your policy. Millions have already used this tool successfully.
What Happens Next: If your complaint is logged, there’s nothing more to do until May 2025 unless your finance company requests more information. If your complaint is acknowledged but unresolved, stay patient. In case of no response after a month, double-check your emails or consider resending your complaint.
Act Quickly: Submit your complaint as soon as possible to avoid potential exclusion from any future pay-out due to time restrictions.
Millions have already used the tool, and the responses have varied.
When your finance company confirms that you had a DCA, your complaint is logged, and there’s nothing more to do until May 2025.
In cases where you’re told that your finance didn’t have a DCA, it means you weren’t overcharged in this way, so no pay-out is due. However, there could still be other forms of mis-selling involved.
Should your complaint have only been acknowledged but not yet resolved, it’s important to remain patient, as your case is logged and in the system.
For those who receive no response, double-check your emails, including the junk folder, and make sure you used the correct contact details.
Don’t delay – act now to make sure you don’t miss out on what you could be owed.
Meanwhile, it comes after the MoneySavingExpert warned millions of Brits that they could face paying hundreds of pounds more on their council tax bills.
