Martin Lewis issues important update on car finance claim
The Money Saving Expert said he expected an update in July after the UK's Supreme Court heard a case at the start of April, which many hope the outcome will determine whether they receive compensation.
Financial providers have been accused of using discretionary commission arrangements (DCAs) to increase interest rates on motor finance.
Did you get a car, van, motorbike on finance pre 28 Jan 21? Millions are owed £1,000s due to a NEW hidden commission scandal.
Watch full show at https://t.co/Rg3IsM8atz
Free complaint tool at https://t.co/nivrD7gRYd pic.twitter.com/zd4QhlPAWt
Around two-and-a-half million people have now put DCA claims in.
Addressing the scandal on his Martin Lewis Money Show on Tuesday (20 May), Mr Lewis said: 'The people in the know are telling me the decision will be in July.'
The majority of cars sold in the UK are bought with finance agreements. These loans enable drivers to pay a deposit and then spread the cost of a new vehicle over several years.
It was discovered that car dealers, acting as loan brokers, earned a commission based on the interest rate charged to the buyer for Personal Contract Purchase (PCP) and Hire Purchase agreements. These cover about 40% of all car finance agreements.
Recommended reading:
The higher the interest rate charged to the consumer, the more commission the dealer made.
Car dealers were incentivised to make loan agreements with higher interest rates.
The practice, known as discretionary commission arrangements (DCAs), has left many drivers paying hundreds and even thousands of pounds more for their vehicles.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BBC News
8 hours ago
- BBC News
Four more traders appeal rate-rigging convictions after Supreme Court ruling
Four traders are appealing to have their rate-rigging convictions overturned after the Supreme Court quashed two rate-rigging cases on Merchant, Jonathan Mathew, Philippe Moryoussef, and Christian Bittar are seeking acquittal following the victory of traders Tom Hayes and Carlo of the traders were convicted of manipulating the interest rates used for loans between banks, know as Libor in the UK, an issue at the heart of the 2008 financial crisis."Following the Supreme Court's landmark decision yesterday to quash the convictions of Tom Hayes and Carlo Palombo, all four of our clients now intend to appeal against their convictions," said law firm Hickman & Rose. "In those circumstances, they don't intend to comment further at this time," the firm four convictions came after an investigation from the Serious Fraud Office into whether traders had been manipulating Libor for became the focus of allegations of wrongdoing following the financial crisis in 2008 and has now been discontinued, while its European equivalent Euribor is being the Supreme Court has now ruled in favour of Mr Hayes and Mr Palombo, the four traders' appeal is likely to be a more straightforward process than for Mr Hayes and Mr Palombo who argued their case for Serious Fraud Office declined to comment on the appeal from the four traders on it said on Wednesday in response to the ruling on Mr Hayes and Mr Palombo's case that it had "considered this judgement and the full circumstances carefully and determined it would not be in the public interest for us to seek a retrial".The Libor scandal came to light in 2012, when it was discovered that banks were artificially inflating rates to profit from trading and were also lowering them to mask the troubles they faced following the outbreak of the global financial in 2023, the BBC uncovered evidence of a much larger, state-led "rigging" of interest rates, under pressure from central banks and governments across the world during the financial Hayes and Mr Palombo argued they were wrongly prosecuted for what were normal commercial practices in order to appease public anger towards the banks over the financial crisis.
The Independent
10 hours ago
- The Independent
Trump signs order to clarify college athletes' employment status amid NIL chaos
President Donald Trump on Thursday signed an executive order mandating that federal authorities clarify whether college athletes can be considered employees of the schools they play for in an attempt to create clearer national standards in the NCAA's name, image and likeness era. Trump directed the secretary of labor and the National Labor Relations Board to clarify the status of collegiate athletes through guidance or rules 'that will maximize the educational benefits and opportunities provided by higher education institutions through athletics.' The order does not provide or suggest specifics on the controversial topic of college athlete employment. The move comes after months of speculation about whether Trump will establish a college sports commission to tackle some of the thorny issues facing what is now a multibillion-dollar industry. He instead issued an order intended to add some controls to 'an out-of-control, rudderless system in which competing university donors engage in bidding wars for the best players, who can change teams each season.' 'Absent guardrails to stop the madness and ensure a reasonable, balanced use of resources across collegiate athletic programs that preserves their educational and developmental benefits, many college sports will soon cease to exist," Trump's order says. 'It is common sense that college sports are not, and should not be, professional sports, and my administration will take action accordingly.' There has been a dramatic increase in money flowing into and around college athletics and a sense of chaos. Key court victories won by athletes angry that they were barred for decades from earning income based on their celebrity and from sharing in the billions of revenue they helped generate have gutted the amateurism model long at the heart of college sports. Facing a growing number of state laws undercutting its authority, the NCAA in July 2021 cleared the way for athletes to cash in with NIL deals with brands and sponsors — deals now worth millions. That came mere days after a 9-0 decision from the Supreme Court that found the NCAA cannot impose caps on education-related benefits schools provide to their athletes because such limits violate antitrust law. The NCAA's embrace of NIL deals set the stage for another massive change that took effect July 1: The ability of schools to begin paying millions of dollars to their own athletes, up to $20.5 million per school over the next year. The $2.8 billion House settlement shifts even more power to athletes, who have also won the ability to transfer from school to school without waiting to play. At Big Ten Conference football media days in Las Vegas, Purdue coach Barry Odom was asked about the Trump order. 'We've gotten to the point where government is involved. Obviously, there's belief it needs to be involved," he said. 'We'll get it all worked out. The game's been around for a hundred years and it's going to be around 100 more.' The NCAA has been lobbying for several years for limited antitrust protection to keep some kind of control over this new landscape — and avoid more crippling lawsuits — but a handful of bills have gone nowhere in Congress. Trump's order makes no mention of that, nor does it refer to any of the current bills in Congress aimed at addressing issues in college sports. The 1,100 universities that comprise the NCAA have insisted for decades that athletes are students who cannot be considered anything like a school employee. Still, some coaches have recently suggested collective bargaining as a potential solution to the chaos they see. It is a complicated topic: Universities would become responsible for paying wages, benefits, and workers' compensation and schools and conferences have insisted they will fight any such move in court. While private institutions fall under the National Labor Relations Board, public universities must follow labor laws that vary from state to state and it's worth noting that virtually every state in the South has 'right to work' laws that present challenges for unions. Trump's order also: — Calls for adding or at least preserving athletic scholarships and roster spots for non-revenue sports, which are those outside football and basketball. The House settlement allows for unlimited scholarships but does impose roster limits, leading to a complicated set of decisions for each program at each school that include potential concerns about Title IX equity rules. Trump said 'opportunities for scholarships and collegiate athletic competition in women's and non-revenue sports must be preserved and, where possible, expanded.' — Asks the Justice Department and Federal Trade Commission to 'preserve college athletics through litigation" and other actions to protect the rights and interests of athletes — a stance that could influence ongoing lawsuits filed by athletes over eligibility and other issues. — Directs White House staff to work with the U.S. Olympic and Paralympic Committee to protect the collegiate pipeline feeding Team USA. College sports programs produce around three-quarters of U.S. Olympians at a typical Summer Games, but some are on uncertain footing as schools begin sharing revenue with athletes and the lion's share going to football and basketball. ___ AP National Writer Eddie Pells contributed. ___
The Independent
10 hours ago
- The Independent
Lula says the US has ignored Brazil's attempts to negotiate Trump's announced tariff
Brazilian President Luiz Inácio Lula da Silva said Thursday that his government has not been successful in trying to negotiate the 50% tariff on Brazilian imports that U.S. President Donald Trump has threatened to impose. Washington has ignored Brazil's attempts to negotiate ahead of the measure's expected implementation on Aug. 1., the Brazilian leader said. 'Brazil is used to negotiating,' Lula said. 'We had already 10 meetings with the United States. On May 16, we sent them a letter asking for clarification on the proposals we had made." 'They didn't respond. They responded through a website,' Lula added, referring to Trump's post on his social media platform Truth Social on July 9, announcing the tariff. Trump directly linked the import tax to the trial underway in Brazil of his ally, the country's former President Jair Bolsonaro, which he called a 'witch hunt.' Rather than backing down, Brazil's Supreme Court escalated the case, worsening Bolsonaro's legal troubles. Federal police has raided Bolsonaro's home and political office, ordered him to wear an ankle monitor, banned him from using social media and levelled other restrictions. Lula spoke Thursday in Vale do Jequitinhonha, one of Brazil's poorest regions in the state of Minas Gerais, repeating his mantra of needing to 'defend' Brazil's resources — a message he has adopted since the trade dispute escalated. In related developments, Brazil's Vice President Geraldo Alckmin told reporters in the capital, Brasilia, that he had a 50-minute phone call last Saturday with U.S. Commerce Secretary Howard Lutnick. Alckmin, who also serves as Brazil's minister of Commerce, Industry and Trade, declined to share details of the conversation, saying it was confidential. 'I reiterated Brazil's willingness to negotiate — that's our position," Alckmin, said. "Brazil never left the table. We didn't create this problem, but we want to solve it.' Separately, Brazil raised concerns on Wednesday at a World Trade Organization meeting, arguing that arbitrary tariffs violate the organization's core principles but making no mention of Trump or the United States, 'Arbitrary tariffs, chaotically announced and implemented, are disrupting global value chains and risk throwing the world economy into a spiral of high prices and stagnation,' Brazil's Ambassador Philip Fox-Drummond Gough said. WTO member states are witnessing 'an extremely dangerous shift toward the use of tariffs as a tool to interfere in the domestic affairs of third countries,' he added. ___
