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Martin Lewis Issues Huge Update as Millions of Brits Owed £700 for Buying Car Before 2024
The Financial Conduct Authority targets 30 lenders covering 89% of the market to compensate 44% of 32 million agreements for undisclosed commissions, averaging £700 each.
- On Tuesday, the Financial Conduct Authority proposed redress covering 14 million mis‑sold car finance agreements, with average payouts expected around £700 each.
- The FCA reviewed around 32 million agreements from 2007–2024 and found motor finance firms failed to inform customers about commissions, expecting about 44% to qualify for compensation.
- Martin Lewis explained the issue by outlining Discretionary Commission Arrangements as the biggest problem, with all three mis-selling types relying on non-disclosure, including tied-dealer arrangements and unfairly high commission.
- Under the FCA's timetable, lenders must write to customers who have complained within three months of the scheme starting and have six months to identify others, with the FCA's estimated redress cost at �8.2 billion.
- Martin Lewis advises consumers to complain now to join the 'already complained' group before the scheme starts next year; he says typical redress averages 17% of interest paid and MoneySavingExpert offers a template letter.
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19 Articles
Fife Today+13 Reposted by 13 other sources
Car compensation: Martin Lewis gives update on FCA mis-sold car finance compensation claim scheme
Drivers could be in line for a major payday 💸
·Kirkcaldy, United Kingdom
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Coverage Details
Total News Sources19
Leaning Left2Leaning Right0Center14Last UpdatedBias Distribution87% Center
Bias Distribution
- 87% of the sources are Center
87% Center
13%
C 87%
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