Martin: Important Update
Car Finance Mis-selling: what you should do now
If you bought a car, motorbike or camper van on PCP or HP from Apr 07 to Nov 24, it may be one of 14m agreements now due c. £700 compensation
Just as we pressed send on last week's email, the financial regulator, the FCA, announced a consultation for the biggest redress scheme since PPI, with a predicted £8.2 BILLION to be paid out - so I rapidly put my instant analysis video in the email.
Since then, we've started to interrogate the 360-page consultation and work through the key question you're asking: "What do I do now?" And while it's called a 'consultation', this is the regulator setting out its plans. It must legally consult, but barring legal challenge, my guess is there'll be few major changes. So let me take you through what I think right now...
Find listening easier than reading? This is the core subject of my latest Martin Lewis Podcast with a full explanation and Q&A on how to claim, how much, what you need to do, claims for deceased relatives &
more. Listen at BBC Sounds | Apple | Spotify or elsewhere good (& mediocre) pods are listed. PS: Transcript here.
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Under this scheme, there are now THREE ways you may have been mis-sold. And you may've been mis-sold in more than one way, which is why the totals below add up to more than 14m agreements. With all three, the key is that what was happening wasn't disclosed to you (which it only was in a few % of cases), so...
There's no way to know you were mis-sold without checking. The whole point is they didn't tell you what they were doing!
- Discretionary Commission Arrangements (DCAs). 11.4m agreements. This has been our focus for two years, so if you've already complained, it's likely about this. Here the interest rate was increased, in order to pay the dealer or broker extra commission.
