1 week Ago By Luke Chillingsworth
Martin Lewis has claimed motorists are now “more likely” to receive hefty car finance payouts due to a recent FCA update. The Money Saving Expert founder stressed the latest news indicated individuals should be “paid out” if they were the victim of a discretionary commission arrangement (DCA). The FCA has been investigating motor finance firms for months but their latest update suggested the scope of compensation could be much higher than first thought.
A recent Court of Appeal ruling decided it was “unlawful” for brokers to “receive a commission from the lender providing motor finance without obtaining the customer’s informed consent to the payment.” The ruling stressed that “consumers need to know all material facts including the amount of commission'”. The FCA has responded by extending the deadline on complaints until mid-December while Martin admitted the update opens the door to possible reclaims for all car finance commission.
The news not only likely extends the amount of people involved in the case but suggests those most affected are even more likely to get some money back. Speaking on the BBC’s Martin Lewis Podcast , the finance guru said: “People should be checking if they have a DCA. What this ruling from the Court of Appeal and the FCA means for me is it is more likely if you had a DCA you will be paid out.
“But it is also more likely it will take longer for you to be paid out as everything will be delayed. “Then we get on the question of should you be putting in a complaint if you didn't have a DCA you just had commission, or if you put in a DCA complaint and they said you don't have a DCA. “Well, the regulator seems to be indicating yes but the consultation period is two weeks and then it will be another two weeks to put it in place.
” Vehicles sold under car finance deals between 2007 and 2021 are believed to be impacted by the investigation. Martin has previously estimated that individuals could receive up to £1,100 each in compensation. Money Saving Expert has already helped facilitate 2.
5million complaints to car finance firms on behalf of motorists. Drivers can find out whether they had a DCA agreement or paid any commission on their purchase by getting in touch with their lender..
