This week’s episode of The Martin Lewis Money Show Live focused on a potentially new mis-selling scandal that could become the “UK’s second biggest reclaim after PPI”, according to its award-winning host. Martin Lewis took viewers through the complicated process that could see millions of people who purchased a car, van, camper van or motorbike on finance before January 28, 2021, receive more than £1,100 in compensation.
The consumer champion told STV viewers on Tuesday night that to make it easier for people to make a complaint and begin the process, he and his team at MoneySavingExpert.com (MSE.com) had created a template letter that anyone can access and use. Incredibly, after just one day since the template went live, it has been used by 262,500 people.
Martin took to social media to share the update and encourage more people not to miss out, even though any decision by the Financial Conduct Authority (FCA) on whether they will be due money back from an inflated discretionary commission arrangement, will not be announced until September 25, 2024.
Posting on X (formerly Twitter), he posted: “Car finance reclaiming update. Staggeringly after just 1 full day of our free complaint tool being live…
“262,500 complaint emails have been sent. It’s estimated 40% will’ve had hidden commission. Typical overcharge was £1,100 per agreement.
“So predicted payout will be £115,000,000 (that’s conservative as many letters are multi-agreement).”
MSE.com’s car finance commission reclaim guide explains the whole process and reasons behind their new campaign to help millions of motorists get back around £1,100, although this figure could be much higher.
The free car finance reclaim guide and tool also generates a bespoke letter drafted by Martin Lewis, to help those who purchased a vehicle using finance claim back hidden and unfair commission. Anyone who bought a car, van or motorbike with a finance agreement before 28 January 2021 could be affected and should look at getting a complaint logged as soon as possible.
Martin Lewis said: “A back of the envelope calculation shows this will likely end up being the second biggest ever UK reclaim campaign, after PPI. 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. 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.”
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