The Martin Lewis Money Show Live made a comeback on Tuesday with a special episode covering a range of topics. The consumer champion began the hour-long ITV programme with an update for those eagerly awaiting the outcome of an investigation into car finance compensation.
Earlier this year, Martin disclosed that millions who purchased a car, van, campervan or motorcycle on finance before January 28, 2021 might be entitled to thousands of pounds in compensation due to ‘hidden commission’ charges. He said that drivers typically paid £1,100 more interest on a £10,000 four-year car finance deal when there was a discretionary commission arrangement – but emphasised that the larger the loan, the more money you could potentially reclaim.
However, a decision by the Financial Conduct Authority (FCA) on whether compensation payouts could be due is not anticipated until September 25, 2024. However, a viewer named Lee reached out to the show stating he had sent letters to car finance companies and received confirmation that he overpaid on two of them.
He queried the financial expert if he needs to take any further action, or simply wait for the FCA’s decision. Martin reassured viewers that Lee has done all he needs to do and just needs to await the FCA’s decision on September 25, reports the Daily Record.
Continuing Martin said, “You’ve got your claim in, if the regulator – the FCA – rules that car firms have to pay out, they’re talking a typical payment of £1,100 per person, so yeah, you’ve done everything.”
When the official announcement is made, he vouched he would guide everyone “exactly what to do on that day” making sure they secure the funds owed to them. Martin dropped essential information for those who have utilised the online template tool on MoneysavingExpert.com (MSE.com) to whip up a complaint letter and are still anticipating a response.
The influx of letters has left companies ‘snowed under’, but assured viewers not to get anxious if they haven’t received a response yet. He revealed that he’d run a survey among 11,000 people who dispatched the MSE.com template claims letter and is scrutinising the results to lay out detailed assistance concerning each firm’s proceedings.
Martin pledged to disclose this information across social media platforms in the coming weeks. However, he concluded with an urgent plea to those who haven’t mailed their letter yet.
He said: “The most important message I can give anyone watching is if you bought a car on PCP or hire purchase before January 2021 and you haven’t put a claim in now to find out if you have discretionary commission, the sooner you get it in, the less chance there is of you being timed out.”
To help everyone who has already emailed their complaint, Martin and the team of experts have put together a complete next steps list.
This covers:
- What to do if you complained but had no response yet
- What to do if your complaint has been acknowledged, but no more information has been given
- What to do if you’ve had a response with options
The full guide, plus the template letter and an indication on when specific finance firms are likely to respond can be found on MSE.com here.