Latest news with #DiscretionaryCommissionArrangements
Daily Mirror
6 days ago
- Automotive
- Daily Mirror
Martin Lewis gives urgent warning to drivers over slice of £18b compensation
The FCA is to launch a consultation within six weeks on a proposed redress scheme for drivers mis-sold car loans, following the Supreme Court ruling on the hidden car finance commission claim Martin Lewis has weighed in on the Financial Conduct Authority's (FCA) recent announcement about its official redress scheme for drivers who were mis-sold car loans, potentially opening the door to compensation claims. The move comes after a Supreme Court ruling that partially overturned previous decisions regarding hidden car finance commission claims, setting the stage for drivers to claim a share of an estimated £18 billion in compensation, with many individuals likely to receive £950 or less. In response to the news, Martin took to social media, advising: "Should you put a car finance complaint in now on the back of the regulator's new consultation? (No need to do anything if you've already complained)." In other similar news, Nationwide will pay £760 into accounts of customers who do one thing. Echoing the FCA's guidance, he continued: "Our advice remains that consumers concerned that they were not told about commission and who think they may have paid too much for the finance, should complain now." He also highlighted the potential savings for consumers by avoiding third-party services, stating: "We aim to make any scheme easy to participate in, without needing to use a claims management company (CMC) or law firm. Using a CMC or law firm may end up costing them up to 30% in fees of any compensation they receive." He continued: "My view on the back of this is there's no harm in putting a DIY complaint now to see if you had a Discretionary Commission Arrangement and it could be particularly beneficial in old cases where you have the detail of your car finance, but the car finance firm may have deleted it, as that way you put a marker in that you want your case looked at." "Though in newer cases, it's more that many want to know now whether you're likely due compensation or not, but if you don't want to hassle, you likely wouldn't lose out by not putting one in." The money guru broke down the two different types of car finance miss-selling for those caught up in the chaos, starting with discretionary commission arrangements, reports Birmingham Live. Martin explained: "That was banned in 2021. What could have happened last year, the regulator announced it would be investigating that and it is very likely people were miss-sold on that basis, is what we're thinking right now. What we were waiting for in the Supreme Court decision was if it said anything that stopped Discretionary Commission Arrangements being done, or a redress scheme being done by the regulator." He added: "There wasn't anything as far as I can see right now. So I suspect within the next 6 weeks, it will launch a consultation for a redress scheme. Which is why I have a very big warning: DO NOT sign up to a claims firm now if you're thinking of it, because it is absolutely plausible that you will get the redress without doing anything but the redress firm will want 25 or 30% of the money, even though it hasn't done anything. So sit on your hands right now, we're waiting to see what happens with the regulator."
Scottish Sun
14-07-2025
- Automotive
- Scottish Sun
Key mistake that could see you lose up to 36% in car finance misselling scandal compensation
We reveal top tips for finding out if you're affected below CAR BLOW Key mistake that could see you lose up to 36% in car finance misselling scandal compensation Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MOTORISTS affected by the car finance mis-selling scandal have been issued a warning over a simple mistake that could prove costly. Impacted drivers should avoid using claims management companies (CMC) or law firms to get compensation, the regulator has said. Sign up for Scottish Sun newsletter Sign up 1 The FCA has cautioned against motorists claiming compensation through CMCs Over 23million people believe they could be owed money due to mis-sold car car finance loans, according to recent research. However, the Financial Conduct Authority (FCA) has cautioned anyone using a CMC or law firm could lose a hefty amount of any payout in fees. The FCA said: "Consumers should be aware that by signing up now with a CMC or law firm, they may end up paying for a service they do not need and losing up to 30% of any money they may receive." The amount of compensation swallowed in fees can be worth up to 36% too, as claims companies can charge additional VAT. The amounts of compensation affected drivers will receive are yet to be confirmed, but someone in line for a £1,000 compensation would see £360 paid out in fees. The FCA is currently waiting for the outcome of a Supreme Court ruling before deciding whether a mass redress scheme for affected drivers will go ahead. It said in June it will confirm within six weeks of that ruling whether a scheme will go ahead. The regulator also laid out how a possible scheme would look and when any compensation could be paid, estimated to be in 2026. What is the car finance mis-selling scandal? The Car Finance Discretionary Commission Scandal affects those who bought a car, motorbike or van on finance before January 28, 2021. After this date, the FCA banned lenders from using "Discretionary Commission Arrangements" (DCAs). DCAs allowed brokers to increase interest rates on car finance loans, which in turn saw their commission bumped up. It has been classed as an unfair practice because drivers weren't told about the DCAs and therefore thought any deals were a fixed price they couldn't negotiate on. But, anyone who took out a vehicle on finance before January 28, 2021, could have been paying more than they should have. The FCA estimates around 40% of car deals bought on finance before 2021 could be affected. Lloyds Banking Group has set aside £700million for potential compensation relating to the scandal. Barclays has allocated £90million, while Santander said last year it had earmarked £295 million for potential payouts. The Royal Bank of Canada has estimated that the industry's bill for motor finance compensation could stretch to £13billion while Which? estimates it could cost them up to £16billion. What could the compensation scheme look like? Lucy Andrews, deputy consumer editor at The Sun, explains what you need to know. The FCA is mulling over what a redress scheme would look like if the Supreme Court rules that drivers should be compensated. The watchdog will set out rules for how claims will be assessed and calculated. There are two main options for a redress scheme: an opt in, or opt out structure. Under an opt-in scheme, you would have to sign up and confirm you want to be included within a certain time limit. An opt-out scheme would mean that customers are automatically signed up. How to find out if you're affected and next steps The website has a tool you can use to find out if you might be in line for compensation. You can find it via It also lets you draft a letter to submit a complaint to the lender or broker who sold you a car finance deal ahead of any Supreme Court ruling. You can also do this yourself. Sarah Coles, personal finance expert at Hargreaves Lansdown, said: "Say (in the letter) why you want to complain, and include as much information as you can. "They should acknowledge your letter within eight weeks, but they don't have to send you a final answer until after December 4 this year – because things have been put on hold while the legal cases rumble on." If you're not happy with your firm's response, you can complain the Financial Ombudsman Service (FOS). Contact details for the FOS can be found via However, it might be worth waiting until the FCA has laid out its next steps for a redress scheme. This is particularly important as some CMCs and law firms have advertised highly speculative figures for how much drivers could be owed in compensation. The FCA has said it will make any scheme easy to take part in without the need for a CMC or law firm. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Daily Record
07-07-2025
- Automotive
- Daily Record
Millions of people due £1,100 car finance compensation update this month
The Supreme Court is expected to issue a final ruling on the scope of the problem this month. A new survey suggests more than 23 million people across the UK believe they could be in line for compensation of around £1,100 over mis-sold car finance loans. The poll found that 45 per cent of people believe they are likely to be eligible for some sort of payout over motor finance deals signed between 2007 and 2021. Consumer groups estimate that motorists took out more than 30 million car loan deals over those years. Regulators and courts have found that many of the car finance deals signed in that period did not properly inform consumers about hidden charges through Discretionary Commission Arrangements (DCAs). Consumer groups estimate that motorists took out more than 30 million car loan deals over those years. The Supreme Court is expected to issue a final ruling on the scope of the problem this month, after which the Financial Conduct Authority (FCA) may set up a formal redress scheme for lenders to compensate consumers. The survey of 4,000 people in June was carried out by the pollsters Find Out Now, on behalf of consumer law firm Slater and Gordon, suggests that public expectations over the car finance issue are running very high. Slater and Gordon said those expectations could create challenges for the FCA in designing any redress scheme. The City Regulator has suggested it may set up the redress scheme in a way that reduces the scope for consumers to hire lawyers to make claims on their behalf. Instead, the regulator could ask the lenders who carried out the mis-selling to check their records and decide who gets compensation. However, less than a quarter (23%) of people surveyed said they would trust the lenders to do this fairly. Slater and Gordon backed the idea of a redress scheme, but warned that the FCA's plans risk widespread disappointment and a potential backlash unless it is carefully constructed to ensure consumers are protected from missing out. Some 40 per cent of poll respondents said they would consider taking legal action to challenge the redress scheme if they are unhappy with the outcomes. The polling also suggests that a redress scheme reliant on lenders to identify and trace victims of mis-selling could miss out significant numbers of people who should get compensation. Among respondents who believe they are entitled to compensation - estimated by consumer champion Martin Lewis to be around £1,100 per vehicle purchase - some 57 per cent said they had moved house at least once during the claims period, something that might make it impossible for lenders to contact them for redress. A further 13 per cent of potential claimants said they changed their legal name during the claims period, which could also make them hard to reach for redress. In addition, 36 per cent of potential claimants - 8.4 million people - said they have lost at least some of the paperwork on their previous car finance deals. Commenting on the findings, Elizabeth Comley, Chief Operating Officer of Slater and Gordon, said: 'The public have very high expectations on the car finance scandal. They rightly expect to be compensated for their losses. 'The FCA is trying to put things right but there's a risk that a redress scheme leaves many people disappointed and keen to challenge the process. That sort of backlash would be bad for everyone - the scandal would drag on for years, the courts would be inundated with challenges and the public would be denied the clear resolution they want.' Ms Comley continued: 'The FCA is trusted by the public to resolve this issue, but the public will not support putting decisions on redress in the hands of the lenders responsible for mis-selling - people just don't trust the wrongdoers to decide who gets compensation. 'An FCA redress scheme that relies on the lenders responsible for mis-selling to identify people who get compensation would mean many people miss out, perhaps because they have moved address or changed their name and the lenders can no longer find them. That would be unacceptable and fuel public cynicism.' The legal expert added: 'The best way to ensure a redress scheme works well for everyone and resolves this scandal swiftly is to allow people the choice to hire a lawyer to support their claim. 'Independent professional lawyers work to assemble documents and evidence, pursue people's rights and ensure they get what's due to them. Why shouldn't people have this option if they want it?' Alex Neill, co-founder of Consumer Voice, said: 'People are rightly concerned about the use of secret commissions in car finance. Millions of drivers feel misled and have suffered financial harm - so it's no surprise that public expectations for compensation are high. 'Our own research shows that two-thirds of consumers would have acted differently if they'd known about dealer commissions, and many remain concerned about how those commissions impact what they pay. 'Any redress scheme must tackle drivers' legitimate distrust of lenders and be built with fairness to consumers at its core. People must be given choice and clear information about their options and the compensation they can expect to receive. Resolving claims quickly is in everyone's interest, but it must not come at the expense of people being denied proper access to justice.'
Scottish Sun
25-06-2025
- Automotive
- Scottish Sun
Drivers could receive up to £4,000** refund due to car finance scandal with 31.7 million eligible to claim
*If you click on a link in this article, we will earn affiliate revenue. Money for nothing Drivers could receive up to £4,000** refund due to car finance scandal with 31.7 million eligible to claim HAVE you heard about the car finance scandal? For nearly 20 years, drivers with PCP and HP agreements were being charged higher interest rates, potentially costing them thousands of pounds. Advertisement 1 The scandal has affected millions Credit: getty The missold car finance scandal could cause one of the largest compensation payouts in UK banking history. An estimated 31.7 million drivers could be eligible to claim a refund. Could you? Learn why the car finance mis-selling scandal is serious and why you need to submit your claim to secure a potential payout. Advertisement What is the car finance scandal? In 2021, the Financial Conduct Authority (FCA) discovered that car dealers were earning extra commission on PCP and HP finance agreements by setting higher interest rates. The bottom line is that they earned more cash if loans were more expensive. It turns out that the practice, known as Discretionary Commission Arrangements (DCAs), had been ongoing since 2007. Fast forward to today, and any PCP or HP agreement signed between 2007 and the end of January 2021 could have been mis-sold. Advertisement During this period, an estimated 31.7 million PCP and HP finance deals were agreed. That's about 99% of total car finance agreements. All of these drivers could be eligible for mis-sold finance compensation, which is why banks and lenders have set aside billions of pounds to deal with claims. Who is eligible for a refund? Potentially anyone who bought a car, motorbike, or van with a PCP or HP finance agreement between 2007 and January 28, 2021, when the practice was banned, could be eligible for a payout. You can even make a claim if you have previously been denied compensation. Advertisement Check if you could claim for mis-sold car finance below How much could drivers receive? The car finance mis-selling scandal is a serious problem for banks and lenders. Drivers could be eligible for up to £4,000* for each PCP or HP agreement they took out, say My Claim Group. Data they have gathered shows that the average person could make two claims, with compensation of roughly £2,000 per claim**. Advertisement The £2,000** figure reflects the £1,100 overcharge for every £10,000 financed (estimated by the FCA) plus 8% simple interest. Had more than two agreements? There are no limits on the number of claims that you can make as long as you're eligible. How to check your eligibility for a car finance scandal claim Not all car finance agreements were mis-sold. To find out if you're eligible, you'll need to find details of your HP and PCP car finance agreements and communicate directly with the lender. Advertisement Don't worry if you can't remember who arranged your loan agreement or provided the finance, there's another way to claim compensation. Claims management firms like My Claim Group can manage the whole process for you, including identifying eligible finance agreements, contacting your lender, and passing you onto a solicitor firm that could secure your compensation. The solicitor firm will take a fee from the settlement to cover the cost of the service of up to 36%, including VAT*. How does it work? Let's walk you through each step below. Advertisement Check if you could claim for mis-sold car finance below My Claim Group: Steps to make your claim Claiming car finance mis-selling compensation is simple with My Claim Group. To register, you'll need to provide some personal information and details of your current and previous addresses. Once you've signed up, My Claim Group will be able to access your credit history and identify any car finance agreements that may have been mis-sold and confirm your eligibility for. Advertisement If you've got more than one agreement, they'll be able to help you find them for the law firm to submit multiple claims on your behalf. With my Claim Groups trusted solicitor partners, you'll receive regular notifications about the status of your claim and the potential likelihood of a payout. It's a simple, quick and easy way to secure compensation for car finance mis-selling. Advertisement Car finance mis-selling FAQs Get some answers to common car finance mis-selling questions. What happens after you submit your claim? Lenders are currently dealing with thousands – and potentially millions – of claims, so you'll need to be patient. Due to the high volume of claims, the FCA has given lenders until 4 December 2025 to begin communicating with claimants. If you've claimed with My Claim Group, you'll receive regular notifications about the status of your claim and the potential likelihood of a payout. Advertisement How long does the process take from application to payout? We can't tell you exactly how long it will be until you receive a payout (see above). What's important is that you get a claim in today. The sooner you lodge your claim, the sooner you could receive a payout. Tips for protecting yourself in future If you've been caught out by the car finance mis-selling scandal, it wasn't your fault. While all current PCP and HP agreements will be sold legally, here are some tips to ensure you get the best deal on any finance agreement. Advertisement Take some time to learn about the different types of finance agreements (car loans, PCP, HP, etc.), including their benefits and drawbacks Understand how to compare the costs (including APR) of any finance agreement Always ask about any add-ons or additional fees you're being charged Trust your instincts and be prepared to walk away if you feel you're being pressured to sign Check the small print for any added extras that could increase costs Ask for a copy of the credit agreement so you can see what you're signing Finance agreements have a 14-day cooling off period, so don't worry if you get second thoughts, there's time to change Check if you could claim for mis-sold car finance below
The Irish Sun
25-06-2025
- Automotive
- The Irish Sun
Drivers could receive up to £4,000** refund due to car finance scandal with 31.7 million eligible to claim
HAVE you heard about the car finance scandal? For nearly 20 years, drivers with PCP and HP agreements were being charged higher interest rates, potentially costing them thousands of pounds. Advertisement 1 The scandal has affected millions Credit: getty The missold car finance scandal could cause one of the largest compensation payouts in UK banking history. An estimated 31.7 million drivers could be eligible to claim a refund. Could you? Learn why the car finance mis-selling scandal is serious and why you need to submit your claim to secure a potential payout. Advertisement What is the car finance scandal? In 2021, the Financial Conduct Authority (FCA) discovered that car dealers were earning extra commission on PCP and HP finance agreements by setting higher interest rates. The bottom line is that they earned more cash if loans were more expensive. It turns out that the practice, known as Discretionary Commission Arrangements (DCAs), had been ongoing since 2007. Fast forward to today, and any PCP or HP agreement signed between 2007 and the end of January 2021 could have been mis-sold. Advertisement Most read in Motors Exclusive During this period, an estimated 31.7 million PCP and HP finance deals were agreed. That's about 99% of total car finance agreements. All of these drivers could be eligible for mis-sold finance compensation, which is why banks and lenders have set aside billions of pounds to deal with claims. Who is eligible for a refund? Potentially anyone who bought a car, motorbike, or van with a PCP or HP finance agreement between 2007 and January 28, 2021, when the practice was banned, could be eligible for a payout. You can even Advertisement Check if you could claim for mis-sold car finance below How much could drivers receive? The car finance mis-selling scandal is a serious problem for banks and lenders. Drivers could be eligible for up to £4,000* for each PCP or HP agreement they took out, say Data they have gathered shows that the average person could make two claims, with compensation of roughly £2,000 per claim**. Advertisement The £2,000** figure reflects the £1,100 overcharge for every £10,000 financed (estimated by the FCA) plus 8% simple interest. Had more than two agreements? There are no limits on the number of claims that you can make as long as you're eligible. How to check your eligibility for a car finance scandal claim Not all car finance agreements were mis-sold. To find out if you're eligible, you'll need to find details of your HP and PCP car finance agreements and communicate directly with the lender. Advertisement Don't worry if you can't remember who arranged your loan agreement or provided the finance, there's another way to claim compensation. Claims management firms like The solicitor firm will take a fee from the settlement to cover the cost of the service of up to 36%, including VAT*. How does it work? Let's walk you through each step below. Advertisement Check if you could claim for mis-sold car finance below My Claim Group: Steps to make your claim Claiming car finance mis-selling compensation is simple with To register, you'll need to provide some personal information and details of your current and previous addresses. Once you've signed up, Advertisement If you've got more than one agreement, they'll be able to help you find them for the law firm to submit multiple claims on your behalf. With my It's a simple, quick and easy way to secure compensation for car finance mis-selling. Advertisement Car finance mis-selling FAQs Get some answers to common car finance mis-selling questions. What happens after you submit your claim? Lenders are currently dealing with thousands – and potentially millions – o f claims, so you'll need to be patient. Due to the high volume of claims, the If you've claimed with Advertisement How long does the process take from application to payout? We can't tell you exactly how long it will be until you receive a payout (see above). What's important is that you get a claim in today. The sooner you lodge your claim, the sooner you could receive a payout. Tips for protecting yourself in future If you've been caught out by the car finance mis-selling scandal, it wasn't your fault. While all current PCP and HP agreements will be sold legally, here are some tips to ensure you get the best deal on any finance agreement. Advertisement Take some time to learn about the different types of finance agreements (car loans, PCP, HP, etc.), including their benefits and drawbacks Understand how to compare the costs (including APR) of any finance agreement Always ask about any add-ons or additional fees you're being charged Trust your instincts and be prepared to walk away if you feel you're being pressured to sign Check the small print for any added extras that could increase costs Ask for a copy of the credit agreement so you can see what you're signing Finance agreements have a Read more on the Irish Sun Check if you could claim for mis-sold car finance below My Claim Group is a trading name of the Claims Protection Agency Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 836470). *My Claim Group will undertake a free check at no cost to you on your behalf to assess if you may have a vehicle finance claim. *** If you proceed, our panel solicitors work on a no win, no fee basis (subject to exclusions, for full details click on: You do not need to use a claims management company to make a claim; you can do this yourself for free by contacting the car dealership or finance provider and if that is not successful you can complain to the Financial Ombudsman Service. **See link for the FCA reference, solicitor fee tables & average valuations:
