‘Huge news’ as ‘almost everyone’ who bought car finance could be due potential refund
Thousands more drivers who purchased car finance could be due a refund after an announcement by the regulator today that makes for “huge news”, according to consumer champion Martin Lewis.
The Financial Conduct Authority says it is planning to consult on extending the time companies have to handle motor finance commission complaints.
Lewis says this will apply to all car finance commission complaints, and not only the discretionary commission arrangements (DCAs) complaints previously covered.
This could mean “almost everyone” who has had car finance deals may have a complaint and be “potentially due money back”.
“This potentially more than doubles the number of people involved, and would really start to look more like PPI scale of payouts (and a substantial threat to the car finance industry),” he said on X.
The Court of Appeal recently ruled in favour of three motorists who were not informed that the car dealerships they agreed car finance deals with were being paid 25% commission, which was then added to their bills.
The ruling said it was unlawful for the car dealers to receive a commission from lenders without obtaining the customer’s informed consent to the payment.
Lewis says this “signals that the FCA is paving the ground to in future broaden the scope of its car finance…
