New Martin Lewis car finance refund warning as millions of people claim £1,100 compensation
dailyrecord.co.ukMartin Lewis is warning anyone who thinks they may have been overcharged for their car loans through Discretionary Commission Arrangements (DCA) to be wary of online adverts offering a ‘no win, no fee’ car claim as it could result in people losing up to 50 per cent of any compensation.
The consumer champion is urging anyone who hasn’t submitted a claim to use the free online letter template on Money Saving Expert (MSE) which has already been used by 2.3 million people and ensures they receive the full amount of any payout.The consumer champion explained earlier this year that millions of people who bought a car, van, campervan or motorcycle on finance before January 28, 2021 may be owed money after being charged ‘hidden commission’.
Drivers typically paid £1,100 more interest on a £10,000 four-year car finance deal when there was a Discretionary Commission Arrangement - but added that the bigger the loan, the more money you could be owed.
An investigation by the Financial Conduct Authority (FCA) was due to conclude at the end of this month, however, the city regulator announced at the end of July that it was giving car finance firms more time to respond to consumers who have submitted a complaint letter - which is basically a claim for a refund.
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