Home News Martin Lewis unveils which drivers are unlikely to receive car finance compensation

Martin Lewis unveils which drivers are unlikely to receive car finance compensation


Martin Lewis has unveiled what motorists may be told by car finance providers if they are unlikely to receive compensation payouts this Autumn.

The Financial Conduct Authority (FCA) is looking into whether lenders unfairly charged motorists discretionary commission arrangements (DCA) as part of PCP finance deals.

Road users who secured a car under finance between 2007 and 2021 could be affected with drivers urged to submit a complaint as soon as possible.

With millions getting in touch with providers, many lenders have started to get back to road users with the next steps they should take.

However, one customer was left confused after his provider told him that he was not charged a DCA fee as part of his policy.

Andy in St Helens wondered whether this means he would not be eligible for payouts when the FCA rules on the case later this year.

Speaking on Martin Lewis’ BBC podcast, he asked: “I received an email a couple of days ago saying they’ve investigated the claim and found there was no discrepancy with regards to finance.

“Do I take that as that’s the end of the claim or do I take it further for another investigation?”

However, Martin admitted it was unlikely the motorist would receive anything as part of the investigation, urging the road user to forget about issuing a further complaint.

The FCA has previously suggested only around 40 percent of those with car finance agreements would be affected by the issue.

Martin replied: “Let’s be plain about this, You may have been mis-sold in other ways but I don’t know.

“What we are talking about here is the FCA’s investigation into potentially systemic mis-selling of discretionary commission arrangements.

“Now for a regulated firm to say you didn’t have a DCA. Well first of all it’s good news, you weren’t mis-sold, you didn’t have the commission taken in that way.

“For it to be lying that would be a monumental shocking issue that the regulator would come down on like a ton of bricks.

“I think it is unlikely that firms would lie about it given the extremely high level of regulatory scrutiny that they are under. Of course, that doesn’t preclude there being a data glitch but again I think it’s unlikely.

“Having given you those caveats, my honest view is if I were you at this point I’d fold up the piece of paper, put it in a drawer, get on with your life and forget about it.

“I can’t give you a categoric but that’s what I would do if I was you.”

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