Martin Lewis urges motorists to check if they could claim thousands
The Money Saving Expert has issued a warning to anyone who has purchased a car on finance in the past as the FCA probe continues
Martin Lewis has issued a fresh alert for drivers who could be due thousands of pounds in compensation. In the most recent edition of his Money Saving Expert newsletter, he pointed out that individuals who financed a car purchase might be eligible to file a claim if they were affected by concealed Discretionary Commission Arrangements (DCA).
These arrangements were used by firms to hike up interest rates unbeknownst to the customer, leading them to pay more than they otherwise would have. The Financial Conduct Authority (FCA) initiated an investigation into this practice in January, with Martin suggesting there's a strong likelihood of customers receiving refunds, although this won't be confirmed until a verdict is reached in May 2025.
Nevertheless, anyone potentially impacted is being encouraged to submit a complaint promptly to avoid falling through the cracks and missing out on a possible substantial payout. The FCA outright banned the use of DCAs in 2021, but drivers may still be entitled to compensation, depending on the outcome of the investigation.
The general advice is that anyone who financed a vehicle between April 2007 and January 28, 2021, should lodge a complaint just in case they were affected.
How to lodge a complaint about DCAs
Submitting a complaint to your firm can be challenging. Your first step is to identify who you need to actually complain to.
The firm you should be addressing your complaints to would be the one receiving your monthly finance payments, not the car dealer or broker. It's advisable to review any documents related to your car finance agreement and any other pertinent information.
Once you've identified the correct party to complain to, you can utilise a free online tool to assist in lodging your complaint. One such tool gaining popularity is MSE's free car finance reclaim tool.
This allows you to input your personal details and information about your car finance firm.
This tool then generates text that can be forwarded to the firm, officially registering your complaint.
Alternatively, you can phone your firm to lodge a complaint. However, it's recommended to ensure the complaint is formally recorded and request written confirmation of the complaint to prevent it from being overlooked.
