Martin Lewis said time was of the essence (Image: Getty)
Martin Lewis has ‘strongly’ urged people making claims over mis-sold car finance to follow his advice to ensure they are compensated promptly. While appearing on This Morning, the money-saving expert called in people to put their complaints in as soon as possible.
Mr Lewis said that this was because people were being given compensation on a first-come, first-served basis. He also said that, due to some claims going as far back as 2007, it could take a long time for all of your details to be found.
The car finance scandal revolves around 12 million agreements made for people who bought a car, van or motorbike on Personal Contract Purchase (PCP) or Hire Purchase between April 6, 2007 and November 1, 2024. Many people were affected by discretionary commissions that inflated the cost of financing the vehicle in question.
Mr Lewis said: “I would very strongly suggest anyone who thinks they were mis-sold motor vehicle finance puts a complaint in. And there are two reasons for this.
“Literally, in the structure of payouts, those who’ve complained get paid first. Right. Right, okay. That’s not me saying I think you’ll get complained first. The whole way it’s operated is if you put a complaint in and you’ve been mis-sold, you will get paid first.
“But a far bigger issue is we’re talking complaints going back to 2007. Now, legitimately under data protection firms, lots of full firms rip up your old information because they’re not allowed to keep it. So they can only identify people that they can identify and you also may have moved house four times.
“So, if you’re relying on them finding you, while they must do their best endeavours, that doesn’t mean they will. If you know your car finance details, or I can tell you how to find them in a moment anyway.
“And you put a complaint in, then one, you know they’ve got your information and two, you know they know how to contact you. So for both of those reasons, I would strongly urge people to put in a free complaint.”
Yesterday (Thrusday, July 2), it was revealed that the UK’s financial watchdog had been forced to pause payouts related to the scheme. The Financial Conduct Authority (FCA) has set up a mass redress scheme, with an estimated £9.1billion set to be paid out.
Firms are obligated to search for those who were mis-sold the packages, meaning they should be paid regardless of whether they make a complaint or not. Compensation should also apply even if the person has passed away in the meantime. The payout was previously estimated at an average of £700, now it’s an average of £830.
However, the FCA is facing legal challenges from four companies who are not happy with its plans, meaning a potentially lengthy delay to any payments. The UK’s Upper Tribunal has agreed to hear the legal challenges in December or February next year, with a judgment expected in the following months.