Latest news with #MyClaimGroup
Daily Mirror
22-05-2025
- Automotive
- Daily Mirror
Brits urged to check car finance details as they could be owed £4,000
Millions of UK drivers could be owed thousands of pounds - and you could be one of them. A new car finance scandal has come to light, which saw lenders paying undisclosed "secret" commissions to car dealerships. This meant that car dealers could determine the interest rates on finance deals; the higher the interest, the larger commission they earned. That left Brits signing up for finance agreements with higher interest rates than necessary - and now, those affected could be due payouts of up to £4,000**. Luckily, My Claim Group (MCG) is one of the groups on hand to help those impacted or who think they may have been affected get their money back - you can check if you're owed money here. The full scale of the issue has only recently emerged, with a major UK Supreme Court judgement due later this year. According to My Claim Group, 40% of HP and PCP finance deals between 2007 and 2021 may have included secret commissions, leading consumers to unknowingly enter into finance agreements with inflated interest rates. Across 1.2million claims so far, MCG has helped vehicle owners to submit claims that could be worth £4,000 on average. If you bought a car, van or motorbike via Personal Contract Purchase (PCP) or Hire Purchase (HP) before 28 January 2021, you could be due thousands of pounds. The car finance scandal kicked off in January 2021, when the Financial Conduct Authority (FCA) stepped in and prohibited discretionary commission models to protect consumers. However, further investigations found that the problem has been going on as early as 2007, so there's been a further examination of past lending activities. By October 2024, the Court of Appeal declared that the non-disclosure of commissions on car loans was illegal. The financial fallout for lenders has been colossal, prompting the government to step in, with UK Chancellor Rachel Reeves voicing concerns about the wider economic implications and the possible effect on consumers' access to car loans. However, claims management firms like My Claim Group are urging consumers to lodge complaints. The Supreme Court is currently examining a crucial appeal by car loan providers, following earlier judgements that sided with consumers. The FCA has temporarily halted the complaints process until the court's verdict, expected later this year. The result of this appeal will play a significant role in establishing the liability of lenders. If you suspect you may have been affected, head over to the My Claim Group website for more information and start the straightforward process to find out if you're due a refund. My Claim Group is a trading name of the Claims Protection Agency Ltd, regulated and authorised by the Financial Conduct Authority (FCA No. 836470). Our Free* check assesses your claim. *If you proceed, our panel solicitors work on a no win, no fee basis (subject to exclusions, for full details click on: Solicitors fees are up to 36% inc VAT. We receive a fee after a successful payout or a referral fee from your solicitor and this does not affect the compensation you will receive. You do not need to use a claims management company, you can claim for free directly with your lender or the Financial Ombudsman Service. **See link for the FCA reference, solicitor fee tables & average valuations:
Wales Online
12-05-2025
- Automotive
- Wales Online
UK car finance scandal: Key dates and guide to claiming £1,000s in overcharges
If you entered into a car finance agreement within a specific timeframe, you might be entitled to a substantial refund. Every day, My Claim Group, an organisation assisting individuals who were unjustly overcharged for car finance over a 14-year span, is being contacted by tens of thousands of people who believe they are owed cahs. Depending on the outcome of a significant court case, tens of billions of pounds could potentially be reimbursed to UK drivers in the forthcoming months. Those who initiated a car finance agreement between 2007 and 2021 may have been wronged without even realising it. As the court case related to this scandal approaches its conclusion, we've compiled a comprehensive guide to help you understand the situation. (Image: Maksym Belchenko via Getty Images) What are we waiting for? On April 1 (no joke), the Supreme Court commenced its hearing to determine whether the Court of Appeal's ruling should stand. The Court of Appeal's decision, which deemed all car finance agreements with hidden commissions as unlawful, took many by surprise. This ruling implies that a larger number of people will be eligible for refunds from lenders. Currently, we're awaiting the Supreme Court's decision on whether to overturn this ruling. Car finance companies Close Brothers and Motonovo appealed to the UK's highest court following the Court of Appeal's verdict in October of the previous year. When can we expect the judgement? Supreme Court rulings typically take anywhere from a few weeks to several months. Given the importance of this case, it will likely be fast-tracked, although the exact timing of the ruling remains uncertain. What would be the implications if the Supreme Court reverses the decision? Although the number of individuals entitled to compensation would decrease, a significant number would still be due money. This is because two types of car finance mis-selling are currently under scrutiny: Discretionary Commission Arrangements (DCAs) and Commission Disclosure complaints. So, what exactly is a DCA? Approximately 40% of car finance agreements from 2007 to 2021 fall under DCAs. Brokers and dealers often inflated the interest customers had to pay on their car finance, typically without informing them, on Personal Contract Purchase (PCP) and Hire Purchase agreements. This was done to boost their commission. And what constitutes a Commission Disclosure complaint? This is the primary focus of the ongoing Supreme Court hearing and stems from the Court of Appeal's ruling that car finance agreements failing to disclose all details of commission were unlawful. This includes the amount brokers would receive as commission, which was seldom revealed. Money Saving Expert estimates that this applies to 99% of car finance cases, including DCA cases. If upheld, this could imply that 99% of all individuals who entered into car finance deals between 2007 and 2021 might be owed money. So, what's the next step? Once the Supreme Court delivers its verdict, the Financial Conduct Authority has pledged to outline the subsequent steps within a matter of weeks. If the Court of Appeal's judgement is reversed, approximately 40% of individuals who entered car finance agreements during the relevant period will be eligible for refunds. The total sum could potentially reach around £10 billion. However, if the ruling is upheld, the number of claimants could significantly increase, and the compensation pot could well surge into tens of billions of pounds. Is it advisable to lodge a complaint at this stage? Absolutely. While the Supreme Court Case's outcome might necessitate lenders to proactively reach out to potential refund recipients, submitting a claim ensures you're less likely to be overlooked for any reason. This is especially crucial if you have relocated since purchasing a vehicle on finance, plan to move soon, or have had any changes to your contact information.
Scottish Sun
09-05-2025
- Automotive
- Scottish Sun
Car finance mis-selling case: Everything you need to know
*If you click on a link in this article we will earn affiliate revenue Mis-Sold Motors Car finance mis-selling case: Everything you need to know THE car finance mis-selling scandal is everywhere, with motorists queuing up to claim a share of what could be billions of pounds in compensation. It's claimed that dodgy car dealers were pocketing extra cash from high-interest car loans, leaving drivers worse off. 2 Check if you could claim for mis-sold car finance below There's an upcoming court case that will put this to the test. If successful, anyone with a car finance agreement signed between 2007 and 28 January 2021 could make a claim. Could you be in line for some car loan compensation cash? In this in-depth article, Sun Motors experts will explain what the car finance misselling scandal is and why it matters to you. We'll also show you how you can register a claim through trusted provider My Claim Group. What is the car finance mis-selling case about? 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. The higher the interest rate charged to the consumer, the more commission the dealer made. Basically, 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. 2 If you bought a car on finance between 2007-2021, you could have a claim. Credit: pexels The practice was banned by the UK's money regulator, the Financial Conduct Authority (FCA) in 2021. The FCA is also exploring where mis-selling took place on non-discretionary finance agreements, where car dealers didn't set the interest rates. It's less likely (but not out of the question) that these loans will also be part of this mis-selling scandal. Check if you could claim for mis-sold car finance below Car finance mis-selling - the timeline Here's a basic timeline of the current car finance misselling legal situation. Problem found (2019): The FCA found some car dealers were making more money by charging people higher interest rates for loans. The FCA found some car dealers were making more money by charging people higher interest rates for loans. New rules (2020): The FCA officially banned Discretionary Commission Arrangement (DCA), where dealers chose the interest rate to get more commission. The FCA officially banned Discretionary Commission Arrangement (DCA), where dealers chose the interest rate to get more commission. Changes start (2021): The ban came into force, which could save drivers money – around £165 million a year. The ban came into force, which could save drivers money – around £165 million a year. More rules (2023): A new rule called Consumer Duty came in, making sure companies put customers first. By the end of the year, over 10,000 people had complained about how commission was handled when they bought a car. A new rule called Consumer Duty came in, making sure companies put customers first. By the end of the year, over 10,000 people had complained about how commission was handled when they bought a car. Pause and review (2024): The FCA paused complaint handling so it could properly look into how car finance was sold, and whether people deserve money back. The FCA paused complaint handling so it could properly look into how car finance was sold, and whether people deserve money back. Court cases begin: Some companies challenged decisions in an attempt to block compensation. Some companies challenged decisions in an attempt to block compensation. Court of Appeal ruling (Oct 2024): The Court of Appeal made a judgment in the Test Cases, finding that it was unlawful for car dealers to receive a commission from loan agreements unless customers were made aware of this. This opens the door for compensation claims from millions of motorists. The Court of Appeal made a judgment in the Test Cases, finding that it was unlawful for car dealers to receive a commission from loan agreements unless customers were made aware of this. This opens the door for compensation claims from millions of motorists. What's next?: The FCA says it might bring in a refund scheme (called the Car Finance Redress Scheme). A final decision will come six weeks after the Supreme Court rules on the case. How do I know if I've been affected? If you're wondering if all this applies to you, here's how to find out. If you bought a car on finance between 2007-2021, you could have a claim. The easiest and quickest way to check if you're eligible to apply for compensation is to join one of the group claims against lenders. My Claim Group is one of the leading legal firms representing thousands of drivers on a no-win, no-fee basis. If you're confident of doing things yourself, you can use this MoneySavingExpert car finance misselling guide to make a free claim. Which firms are involved? The initial mis-selling scandal emerged after the FCA began investigating Barclays, says Which?. Some of the companies caught up in the finance scandal include high-street giants Lloyds, Santander and Barclays as well as Close Brothers. Don't worry if you don't know or can't remember who provides your car loan, My Claim Group can do all this for you. What is the average payout for a mis-sold car finance refund? The finance sector is taking this very seriously, with estimates for the total cost of compensation an eye-watering £16bn, says Which?. The massive figures represent the fact that DCAs were in place for almost 15 years, and could cover millions of loans. The situation is changing and there are several possible outcomes. If the Supreme Court sides with borrowers, the average compensation should be around £1,000. However, the precise amount depends on the amount of money borrowed and interest rates, so some could expect much higher payouts. Compensation could be paid on any loan agreement that has been mis-sold. This means you may be able to make multiple claims if you have owned cars and paid loans during this period. Check if you could claim for mis-sold car finance below When will the Supreme Court make a decision? The Supreme Court is expected to make a decision on the car finance mis-selling scandal at some point in 2025. We can't be more precise than that at the moment. Don't worry, you won't miss the announcement. This is likely to be big news for the public (and potentially bad news for the banks) Is it worth putting in a complaint now? Yes, it's important that you register your claim as soon as possible. The sooner you get your claim in, the quicker you could get any compensation that you are due. The good news is that registering your claim is simple and takes a few minutes. How do I complain? If you think you've been mis-sold car finance, the first step is to contact the company that gave you the finance. If you're not happy with their final reply, you can take your complaint to the Financial Ombudsman Service (FOS). But be aware: you might have to wait a while for that reply. Because of the sheer number of claims, the FCA says companies no longer need to respond within eight weeks. Now, finance companies don't have to reply to complaints about commission until 4 December 2025. If you're unhappy with the response, or you don't receive one, you'll also get more time to take your complaint to the FOS. Normally, you'd have six months after getting a final response. For these complaints, you'll now have 15 months, or until 29 July 2026, whichever is later. As we've explained above, you can do this all yourself if you've got the time and the MyClaimGroup will ask for some details about you, your name, current address and any previous addresses. This will kick off the claim process. You'll then be contacted with information on eligibility and how you can join My Claim Group. Check if you could claim for mis-sold car finance below
The Sun
09-05-2025
- Automotive
- The Sun
Car finance mis-selling case: Everything you need to know
THE car finance mis-selling scandal is everywhere, with motorists queuing up to claim a share of what could be billions of pounds in compensation. It's claimed that dodgy car dealers were pocketing extra cash from high-interest car loans, leaving drivers worse off. 2 Check if you could claim for mis-sold car finance below My Claim Group There's an upcoming court case that will put this to the test. If successful, anyone with a car finance agreement signed between 2007 and 28 January 2021 could make a claim. Could you be in line for some car loan compensation cash? In this in-depth article, Sun Motors experts will explain what the car finance misselling scandal is and why it matters to you. We'll also show you how you can register a claim through trusted provider My Claim Group. What is the car finance mis-selling case about? 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. The higher the interest rate charged to the consumer, the more commission the dealer made. Basically, 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. The practice was banned by the UK's money regulator, the Financial Conduct Authority (FCA) in 2021. The FCA is also exploring where mis-selling took place on non-discretionary finance agreements, where car dealers didn't set the interest rates. It's less likely (but not out of the question) that these loans will also be part of this mis-selling scandal. My Claim Group Car finance mis-selling - the timeline Here's a basic timeline of the current car finance misselling legal situation. Problem found (2019): The FCA found some car dealers were making more money by charging people higher interest rates for loans. New rules (2020): The FCA officially banned Discretionary Commission Arrangement (DCA), where dealers chose the interest rate to get more commission. Changes start (2021): The ban came into force, which could save drivers money – around £165 million a year. More rules (2023): A new rule called Consumer Duty came in, making sure companies put customers first. By the end of the year, over 10,000 people had complained about how commission was handled when they bought a car. Pause and review (2024): The FCA paused complaint handling so it could properly look into how car finance was sold, and whether people deserve money back. Court cases begin: Some companies challenged decisions in an attempt to block compensation. Court of Appeal ruling (Oct 2024): The Court of Appeal made a judgment in the Test Cases, finding that it was unlawful for car dealers to receive a commission from loan agreements unless customers were made aware of this. This opens the door for compensation claims from millions of motorists. What's next?: The FCA says it might bring in a refund scheme (called the Car Finance Redress Scheme). A final decision will come six weeks after the Supreme Court rules on the case. How do I know if I've been affected? If you're wondering if all this applies to you, here's how to find out. If you bought a car on finance between 2007-2021, you could have a claim. The easiest and quickest way to check if you're eligible to apply for compensation is to join one of the group claims against lenders. My Claim Group is one of the leading legal firms representing thousands of drivers on a no-win, no-fee basis. If you're confident of doing things yourself, you can use this MoneySavingExpert car finance misselling guide to make a free claim. Which firms are involved? The initial mis-selling scandal emerged after the FCA began investigating Barclays, says Which?. Some of the companies caught up in the finance scandal include high-street giants Lloyds, Santander and Barclays as well as Close Brothers. Don't worry if you don't know or can't remember who provides your car loan, My Claim Group can do all this for you. What is the average payout for a mis-sold car finance refund? The finance sector is taking this very seriously, with estimates for the total cost of compensation an eye-watering £16bn, says Which?. The massive figures represent the fact that DCAs were in place for almost 15 years, and could cover millions of loans. The situation is changing and there are several possible outcomes. If the Supreme Court sides with borrowers, the average compensation should be around £1,000. However, the precise amount depends on the amount of money borrowed and interest rates, so some could expect much higher payouts. Compensation could be paid on any loan agreement that has been mis-sold. This means you may be able to make multiple claims if you have owned cars and paid loans during this period. My Claim Group When will the Supreme Court make a decision? The Supreme Court is expected to make a decision on the car finance mis-selling scandal at some point in 2025. We can't be more precise than that at the moment. Don't worry, you won't miss the announcement. This is likely to be big news for the public (and potentially bad news for the banks) Is it worth putting in a complaint now? Yes, it's important that you register your claim as soon as possible. The sooner you get your claim in, the quicker you could get any compensation that you are due. The good news is that registering your claim is simple and takes a few minutes. How do I complain? If you think you've been mis-sold car finance, the first step is to contact the company that gave you the finance. If you're not happy with their final reply, you can take your complaint to the Financial Ombudsman Service (FOS). But be aware: you might have to wait a while for that reply. Because of the sheer number of claims, the FCA says companies no longer need to respond within eight weeks. Now, finance companies don't have to reply to complaints about commission until 4 December 2025. If you're unhappy with the response, or you don't receive one, you'll also get more time to take your complaint to the FOS. Normally, you'd have six months after getting a final response. For these complaints, you'll now have 15 months, or until 29 July 2026, whichever is later. As we've explained above, you can do this all yourself if you've got the time and the My Claim Group
Daily Mirror
28-04-2025
- Automotive
- Daily Mirror
2.8 million Brits already seeking payouts from car finance scandal - are you owed cash?
Millions of Brits have already begun to find out if they're owed thousands of pounds having wrongly been mis-sold car finance. This year motorists across the country could be in for a major windfall, with thousands of pounds potentially owed to them due to a car finance mis-selling scandal that's drawing comparisons to the infamous Payment Protection Insurance fiasco. Many drivers have been left out of pocket for years. What's more, many of them don't even realise that they're owed cash. As a court case connected to the scandal nears its end, companies such as My Claim Group (MCG) can help you find out if you can claim. This article contains affiliate links, we will receive a commission on any sales we generate from it. Learn more Find out if you are owed £1,000s without spending a penny You can start a claim with My Claim Group to find out if you are due a big payout. It's easy and takes just minutes to complete. My Claim Group Click here to find out if you're owed money At the heart of the scandal were undisclosed "secret" commissions paid by lenders to car dealerships, which have led customers to unwittingly sign up for finance agreements with jacked-up interest rates. The full scale of the scandal has only recently emerged, with a significant UK Supreme Court judgement expected later in 2025. This decision will determine the extent of the repayments car finance lenders will need to make to their customers. Find out if you're owed thousands of pounds today Can I claim back cash? If you purchased a vehicle through Personal Contract Purchase (PCP) or Hire Purchase (HP) before 28 January 2021, you might be entitled to claim back thousands. My Claim Group is on hand to assist those affected, or who suspect they might be, in reclaiming their cash. You can check how much you could be owed via My Claim Group. The company suggests that as many as 40% of HP and PCP deals from 2007 to 2021 may have involved these covert commissions, indicating that you may have overpaid and could now be eligible for compensation. MCG has already supported vehicle owners in lodging claims that could average around £4,000 each, with 1.2 million claims processed so far. What's the story behind the scandal? Prior to the regulatory shake-up in 2021, a significant number of car finance deals were built on "discretionary commission arrangements." These setups allowed car dealers the freedom to dictate the interest rates of their offered finance deals. The juicier the interest rate, the fatter the commission pocketed by the dealer. This arrangement led to an undeniable conflict of interest. Dealers were economically encouraged to flog loans at inflated interest rates to unsuspecting customers, chasing a plumper payday, regardless of whether such deals were the best fit for the consumer. This often went down without the customer being any the wiser to the commission model steering their terms. Consequently, many consumers were saddled with pricier loans than necessary, oblivious to the fact that their loan terms were skewed by the dealer's eagerness to swell their own profits. When did the dodgy dealings end? The Financial Conduct Authority (FCA) introduced a ban on discretionary commission models in January 2021. This move was intended to hike up transparency and offer greater protection to consumers. It emerged that these questionable lending practices had been going on since as early as 2007, leading to a sweeping probe into the history of the lenders' methods. A pivotal moment occurred in October 2024 when the Court of Appeal declared that the non-disclosure of commissions on car loans was illegal. This ruling broadened the scope for mis-selling claims, establishing a precedent that any hidden commission arrangements could now be a valid ground for consumer compensation. This judgement triggered a wave of complaints, with the Financial Ombudsman Service recording an all-time high of 18,658 new car finance cases in the last quarter of 2024. What's the current situation? The scandal led to government intervention. In January 2025, UK Chancellor Rachel Reeves stepped in to intervene in the Supreme Court case to shield lenders from potential multibillion-pound payouts, voicing concerns about the wider economic implications and the possible impact on consumers' access to car loans. At the same time, claims management firms like My Claim Group are urging consumers to lodge complaints. The Supreme Court is currently examining a crucial appeal by car loan providers, following earlier judgements that sided with consumers. The FCA has put a temporary halt on the complaints process until the court's verdict, expected later this year. The result of this appeal will play a significant role in determining lenders' liability. What can I do? If you suspect you've been affected by the scandal, head over to the My Claim Group website for more information and start the simple process to find out if you're due a refund.
