Drivers who bought a car between 2007 and 2021 'could claim £1,000'

You whitethorn beryllium owed much than £1,000 if you took a peculiar benignant of indebtedness (Image: Getty)

Martin Lewis' MoneySavingExpert has issued a caller informing astir 'mis-sold' car finance, suggesting that conveyance owners could beryllium owed much than £1,000. This chiefly concerns anyone who purchased a car, van, camperVan oregon motorbike betwixt April 2007 and January 28, 2021.

The alert comes arsenic the Financial Conduct Authority (FCA) is conducting an investigation into car financing, assessing whether customers person been overcharged connected involvement for loans. While the adjacent update is not owed until May 2025, conveyance owners tin inactive lodge a ailment assertion contiguous - but they request to enactment swiftly.

"Our car concern reclaiming usher takes you done it step-by-step, but successful a nutshell, you whitethorn beryllium capable to assertion £1,000s backmost owed to HIDDEN Discretionary Commission Arrangements (DCAs) connected your policy," MSE wrote. "These DCAs are wherever concern firms fto car dealers pump up interest rates, without customers being told, and past bunged 'em other committee if they did. This apt meant galore OVERPAID WITHOUT KNOWING and whitethorn beryllium owed a predicted mean £1,100 back."

If you're unsure whether a DCA was included successful your policy, there's nary request to worry. The complaints process lone considers 2 types of concern taken implicit the 14-year period. This includes Personal Contract Purchase (PCP) and Hire Purchase (HP), but leasing is not covered.

Static caravans and concern vehicles are not encompassed successful the complaints criteria (Image: Getty)

Experts emphasise that lone vehicles utilized for idiosyncratic commuting are included successful this, portion concern cars and static caravans are not. Claims tin adjacent beryllium made connected behalf of idiosyncratic who has passed away, oregon for a conveyance nary longer successful your possession.

If you judge you conscionable the criteria, Money Saving Expert (MSE) encourages you to usage its straightforward online tool to formally inquire your concern institution if a Discretionary Commission Arrangement (DCA) was utilized successful your policy. If the reply is affirmative, it volition automatically registry a ceremonial complaint.

Remarkably, MSE asserts that 74% of those who person antecedently utilised this instrumentality discovered they had a DCA. However, imaginable complainants are urged to enactment swiftly.

The Financial Conduct Authority (FCA) launched an probe into car financing (Image: Getty)

When the update arrives successful May 2025, MSE speculates that a 'time bar' whitethorn beryllium introduced, preventing immoderate individuals from claiming aft a definite period.

The FCA besides explains: "Before January 2021, immoderate lenders allowed brokers (the idiosyncratic that arranges your loan, for example, your car dealer) to set the interest rates they offered customers for car finance.

"The higher the interest rate, the much committee the broker received. This was known arsenic a discretionary committee statement (DCA). And it whitethorn person been applied to your indebtedness without you knowing.

"DCAs created an inducement for brokers to summation however overmuch radical were charged for their car loan. We banned this signifier successful 2021. But determination person since been a precocious fig of complaints from customers astir however overmuch they were charged earlier the ban. Providers are rejecting astir of these complaints, due to the fact that they judge they haven’t acted unfairly and haven’t caused customers to suffer out.

"We’re reviewing the contented to marque definite that, if you're owed compensation, you get it successful the champion mode possible."