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Martin Lewis What is explained Drivers May be outstanding between Britain Car -Finance Scandal, and how to navigate to a claim.
The regulator said that motor finance firm Broke the law Or its rules do not properly inform customers about the commission paid by lenders car Dealers who sell loans to them.
Anyone who bought a car on rent purchase or individual contracts between April 2007 and November 2024 may be eligible for the prevention scheme.
Average payment £ 700 per agreement is expected, £ 8.2bn is faced with lenders Compensation Bill.
Some four million car finance deals estimates that already subject to a complaint, leaving about ten million which can still be picked up.
This is what the founder of the money saving expert has to say
Explain in a new video on Moneysavingexpert.comMr. Lewis said that the average payment would be about 17 percent of the interest.
He said, “So for each £ 1,000 you charged, you will get £ 170 back – and it is being average,” he said.
“This is not a case-by-case base, so some people will probably get spoiled due to this, some people will be a little better because of this.”
Mr. Lewis said that most of the cases would follow this line, but he said that a minority of the people had a commission on their debt that was more than 50 percent of the credit cost, and more than 22.5 percent of the total cost of credit. These cases will be given a commission in the Supreme Court based on the Johnson case.
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“Effectively, you will get all commissions and interest paid back, so you will get a lot of money back. It is only a small number of people,” they explained.
How to claim
Mr. Lewis said that if you already put in a complaint, the car finance firm will have three months to write to tell you that you are involved in the scheme, which they have described as “near automatic payments”.
If you have not already complained, the car finance firms will have to identify all those wrong-left and need to contact you within six months of the scheme, and you can choose the option.
However, the Money Savings Expert Founder suggested to make the complaint as soon as possible, so you are already involved in the plan.
Mr. Lewis advised to use a claim firm as he would take the commission fee, and instead urged people to use it. Template letter on their website,
The letter works only for the arrangement of discretionary commission. Mr. Lewis and Money Saving Expert Teams are working on letters for contracted deals in the coming weeks and “incorrectly high” commission system, he said.
For those who are worried for those who are wrong-sold and are struggling for the evidence, Mr. Lewis said: “Have you found any evidence that you had a car finance deal at that time? I am saying an old credit reference file which includes an old bank statement, or a form where it is included. [you can prove that] You were paying them.
“If you do, it can be enough. What they will see, perhaps whether the firm was systematically doing one of these categories. [of mis-selling] At that time for people in your position and, if yes, it is possible that you will get payment. ,
Nikhil Rathi, Chief Executive Officer of Financial Conduct Authority (FCA), announced that it was time “Customers get appropriate compensation” Announcing this plan, which he said to use “simple it is simple” for people and Lenders To implement.
He said, “We believe that there will be many scenes on how this scheme, its scope, time limit and compensation will be calculated.” “On such a complex issue, not everyone will find everything they will like. But we want to work together on the best possible plan and attract a line quickly under this issue.”