Millions of drivers could be owed thousands as an investigation into motor finance deals with hidden commission payments continues, with Martin Lewis’ Money Saving Expert issuing a huge update
Martin Lewis is continuing to warn millions of drivers who could be owed thousands amid the ongoing car finance scandal.
The Financial Conduct Authority (FCA) launched an investigation into motor finance deals with hidden commission payments in January and it’s believed that millions across the UK could be entitled to money back. Drivers who used finance deals to purchase their vehicles between the years of 2007 and 2021 could be in line for an average payday of £1,100.
Money Saving Expert (MSE), the website founded by Martin Lewis, explains: “Did you buy a car, van or motorbike on PCP or Hire Purchase (not leasing) before 28 January 2021? If so, you could be due £1,000s back. In January 2024, the regulator, the Financial Conduct Authority (FCA), launched a major investigation into hidden, unfair car finance commission. This could lead to billions of pounds of overcharged interest paid back to millions of people.”
In a huge update on Thursday, it emerged the FCA have extended the deadline lenders have to respond to borrowers complaining about motor finance deals with hidden commission payments. The FCA said: “Firms who provide motor finance are likely to receive a high volume of complaints in response to the judgment. We have extended the time firms have to handle complaints to help prevent disorderly, inconsistent and inefficient outcomes for consumers and firms.”
Lenders now have until next December to respond to complaints. MSE, which is offering those who want to complain a free car finance commission tool and template letter, is encouraging anyone who believes they may be entitled to a repayment to take a look at their website.
“The FCA has extended the period of time motor finance firms can deal with discretionary commission arrangement complaints (received after 17 November 2023) while it investigates,” an update on the MSE website reads. “In effect this means while it encourages firms to progress complaints, they don’t have to make any decisions just yet.
“The FCA originally expected to report on the findings of its investigation on 25 September 2024, but now they are intending to set out the next steps in May 2025, and have set December 2025 as the date by which firms must have dealt with complaints. You can read the FCA’s consumer help on discretionary commission arrangements for more.”
The FCA is aiming to set out the next steps in its review in May next year, when it also hopes to provide an update on non-discretionary commission agreements complaints. The FCA said: “What we can say in May will depend on the progress of the appeal to the Supreme Court and the timing and nature of any decision. If we can end the complaint handling extension sooner than December 2025, we will.”
The FCA added: “Motor finance is an important market, serving over two million consumers a year. In deciding next steps, we’ll consider how to make sure affected consumers are appropriately compensated and the market continues to work well, with effective competition.”
