Millions of UK drivers are in line for a share of almost £56million in compensation over money lost from inflated car delivery charges. The Competition Appeal Tribunal (CAT) has approved plans to distribute £55.87million in compensation to consumers and businesses affected by the overcharging.
Background to the compensation scheme
The payouts follow a 2018 European Commission fine of €395million (£340million) imposed on international shipping companies for fixing prices for the transport of vehicles. It was alleged that five companies co-ordinated prices, divided up customers between them and exchanged commercially sensitive information.
The Commission ruled: "Instead of competing, they gave each other a free hand on certain routes or with certain customers, by deliberately quoting high prices or not quoting at all in tenders by carmakers."
Who is eligible and how much can you get
Those who bought or leased new cars or vans from 37 brands between October 18, 2006 and September 6, 2015 could be due payouts. The motor brands include Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes, Nissan, Toyota, Citroen, Renault, Honda, Hyundai, and Kia plus 24 other major vehicle manufacturers.
Individual payouts for consumers and businesses will start at £25 for the first vehicle, while those with more than one affected vehicle stand to receive an additional £5 for vehicles two to six and at least £2.50 for each extra eligible vehicle.
How to claim and other eligible groups
There are a few different ways the compensation can be paid, including a bank payment, Nectar points and donations to charities. Former Which? consumer expert Mark McLaren urged consumers to sign up to receive the compensation. Drivers can sign up at www.cardeliverycharges.com/register.
He said: "Signing up now is the best way to be first in line for compensation. With everything now fully approved, the distribution of settlement monies can be distributed later this year.
"Those already signed up will be contacted as soon as the distribution is open and will be directed to our online claim form to get back the money you're owed. We've done everything we can to make this process as easy as possible for those affected.
"This settlement has been secured on behalf of consumers and businesses who were overcharged for new vehicles, because of hidden agreements between companies they'd never heard, which secretly cost them money. They now deserve to get that money back."
Businesses who bought new vehicles for their own use are also eligible, including car rental, delivery, construction, maintenance, and fleet management companies. Government institutions across the UK are also owed compensation, with tens of thousands of vehicles purchased or leased by public sector organisations and local authorities in the relevant period.
