Millions of drivers who bought cars on finance between 2007 and 2021 could be due a payout worth thousands of pounds. But motorists are being urged to check their details and lodge queries quickly before time runs out.
Potential compensation payouts come as part of a major investigation into car finance deals and claims millions of drivers may have been overcharged without their knowledge. Anyone who bought a car on finance before February 2021 has been urged to check if they could be impacted.
Money expert Martin Lewis has highlighted the issue and helped nearly two million drivers submit queries. Anyone who has not yet done so is being urged to do so quickly as the investigation is due to conclude in September.
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This can be done here through his MoneySavingExpert website. The investigation relates to Discretionary Commission Arrangements (DCA) on car finance deals, which may have resulted in some drivers being charged too much. Mr Lewis estimates around 40% – close to half – of all deals could be affected.
The average payout could be £1,500 and some motorists could potentially get as much as £5,300. Finance providers who may have to make payments include Barclays, Santander, Black Horse, VW Financial Services, MotoNovo, BMW Financial Services and Ford Financial Services.
People unsure of their provider should be able to find details on bank statements or emails. This is the company regular finance payments were made to rather than the dealership the car was from – and should show up on bank statements.
Mr Lewis said: “I think it likely that, when the investigation completes (currently planned to be September), the FCA will set up some type of mass-scale redress scheme – though there’s a small chance it’ll change its mind and say this is a damp squib. The best way to act is to assume that scheme is coming.
