Money expert Martin Lewis has launched a new tool to help millions of drivers who may have been mis-sold car finance. The Financial Conduct Authority (FCA) found that motor finance firms failed to properly inform customers about commission paid to dealers.
Anyone who bought a car via hire purchase or personal contract purchase between April 2007 and November 2024 could be eligible for compensation under a proposed redress scheme. Average payouts are estimated at £700 per agreement, with total lender bills potentially reaching £8.2bn.
Lewis's Money Saving Expert site offers a 'DIY complaint' tool to speed up the process. He advises complaining now rather than waiting for firms to contact customers, as older agreements or changes of address could mean people miss out.
The FCA has warned about scammers posing as officials or lenders to steal personal details. Fraudsters may ask for name, address, date of birth and bank details, falsely claiming compensation is owed.
