Martin Lewis issues further warning to Brits who bought a car before 2021
Money Saving Expert Martin Lewis has issued a further warning to Brits who bought a car before 2021.
The financial guru regularly shares tips and tricks which help thousands of Brits save money every month.
Whether it's helping consumers choose whether to fix on their energy deals, or pointing out the best possible time to renew your car insurance, Martin is always on hand with some invaluable advice.
And now, he could be about to help millions of motorists across the UK, who may be entitled to thousands of pounds.
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Earlier this month, Martin warned drivers who bought a car or van on finance before 2021.
He explained that those who'd bought their vehicle may have been unfairly charged inflated prices for loans on new and secondhand vehicles.
As a result, The Financial Conduct Authority (FCA) has announced that it will be launching an investigation following ‘more than 10,000’ reports to the independent complaints arbitrator, the Financial Ombudsman Service (FOS).
And this week, speaking on BBC Sounds, The Martin Lewis Podcast, Martin gave further information about how those affected may be able to claim their money back.
"The regulator has announced a new investigation into lender and car dealers," he said on Wednesday (17 January).
"This is for people who bought a car or a van before January 2021 - possibly to six years before, to 2021 - and you have PCP type finance when you got that deal.
"There will be millions out there in that position. The lenders who organised the finance 'the commission is discretionary', in other words, if you want more commission, increase the cost of the finance and many of them did so but it wasn't declared.
"Enormous, substantial sums paid due to these types of car finance. Firms have now been wrongly rejecting complaints."
Martin explained that he, along with his team, are working on 'a step-by-step guide' about how people can go about claiming the money, as well as answering questions.
Meanwhile, 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.”
The FCA however will not cover complaints on cars bought after 28 January 2021.
After this date, the law changed so that firms could no longer receive commissions linked to the interest rate that the customer paid.
Topics: Martin Lewis, Cars, Money
Lucy Devine