2 weeks Ago By Jack Mortimer
Martin Lewis has warned all Brits who financed a car between 2007 and 2021 to act as soon as possible to see if they overpaid for their vehicle. An investigation by the Financial Conduct Authority (FCA) found that many car dealers imposed hidden Discretionary Commission Agreements (DCAs) to boost the commision they received. Speaking on the new series of his ITV programme , Martin Lewis urged all drivers who financed a vehicle when DCAs were imposed to contact the dealer they bought their car from and, if so, make a formal complaint as soon as possible.
He explained: "This is crucial. There is no way for you to know if you had a DCA. It is not listed on your document, you were not told.
The only way to know is to ask and to complain. You have to put in a request and say 'did I have a DCA?' and, if you do, put in a formal complaint. "While nothing will happen until May, when the FCA will reports, you should log a complaint as soon as possible in case there's a time bar later.
The earlier you get your complaint in, the better, in case it stops being a time bar, because there's so much uncertainty here." According to the FCA, around 40 percent of all drivers who financed a new vehicle between April 2007 and January 2021 had a hidden DCA, meaning they likely paid more than they were meant to. Whilst Martin highlighted that this is difficult to determine without contacting the credit broker or dealer, the Court of Appeal recently issued a precedent-setting rule in favour of consumers, increasing the chances of compensation.
The FCA allows drivers to make their claim until May 2025, but the popular money expert urged motorists who think they were affected to find out now and make a claim for free on his Money Saving Expert website. Martin noted that DCA could have been applied to a number of vehicles between 2007 and 2021, including cars, vans, and motorhomes. He continued: "This is for personal motor vehicles, so cars, vans, campervans, but not static caravans.
You had to buy them on personal contract plans (PCP) or hire purchase (HP). "The key dates are April 2007 to January 28 2021, which is when they stopped allowing DCAs. Clearly, the further back you go, the more difficult to provide the evidence that you had one of these, the more recent the easier.
It does apply, even if the person [driver] has passed away, and even if the vehicle has been paid off." Nevertheless, responding to a letter from a viewer, Martin warned that drivers are unable to apply if the vehicle they financed was for business use other than commuting. He advised: "The thing I would check, it [the letter] says 'van', but this claim is for personal use.
It cannot be for business use, commuting is fine, but it has to be for personal use." Nevertheless, drivers who financed a vehicle through a business agreement could still be able to claim if the car or van was financed through a regulated credit agreement for less than £25,000 and primarily used for personal reasons..
