MSE News: Martin Lewis: Beware car finance reclaiming ads – you could give away 30% and get NOTHING

MSE_Helen_K

At this crucial time for car finance mis-selling complaints – while we await a Supreme Court decision on dealing with such claims – motorists should beware a "spray" of car finance reclaiming adverts. This is the message from MoneySavingExpert.com founder Martin Lewis who warns that you could end up giving away 30% of your money and get NOTHING in return...

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'Martin Lewis: Beware car finance reclaiming ads – you could give away 30% and get NOTHING in return'

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DullGreyGuy

If you get nothing then you haven't given away 30%? So something is wrong in the clickbait text

mollylou89

If I have already signed up (because I am a numpty lol) can I cancel the agreement or have they now got me?

RAS

DullGreyGuy said:

If you get nothing then you haven't given away 30%? So something is wrong in the clickbait text

If you read the article........

Some repayments may be automatic, no claim needed. So you get the money sent to you without doing anything.

If you've signed up to a claim management company, they'll demand and be entitled to their fee even though they've done nothing to help you.

dunstonh

Some repayments may be automatic, no claim needed. So you get the money sent to you without doing anything

If you've signed up to a claim management company, they'll demand and be entitled to their fee even though they've done nothing to help you.

It is looking like a redress scheme is the going to be the method.  The proposed consultation will decide on whether it is auto-opt in or whether you need to opt in.

If the FCA does this correctly, they would make it auto-opt in, cancel all the complaints that have been made which is turn would prevent any CMCs from being paid as they would have done nothing in respect of the redress scheme.   The method that the CMC used will have resulted in zero payout.      Maybe wishful thinking but certainly a possible outcome.

DullGreyGuy

mollylou89 said:

If I have already signed up (because I am a numpty lol) can I cancel the agreement or have they now got me?

You'd need to pay them for the work they have done to date if you wish to withdraw from the agreement. 

dontcallmeany

mollylou89 said:

If I have already signed up (because I am a numpty lol) can I cancel the agreement or have they now got me?

I had done this in error and when i queried it with them and tried to cancel, they then said they would charge me £250 for services compelted to date - i had actually asked them not to submit any claim on my behalf and had not provided adequate information for them to conduct any works, however i hadn't realised i'd signed a Ts&Cs that also acted as a letter of instruction.
When they hit me with the charge, i responded with a subject access request and funnily enough, they dropped the charges pretty soon after

Kendo2424

30%? I'd be happy with that. Slater and Gordon will be charging up to 50% on my car finance reclaim agreement. 
Sign up in haste, repent at leisure :-)

123Designers98

I had signed up not know what I was doing in haste to slater and gordon on a no win no fee and worried now about the situation. Will they take more money from me than I would win in compensation and end up costing me? 

Nasqueron

123Designers98 said:

I had signed up not know what I was doing in haste to slater and gordon on a no win no fee and worried now about the situation. Will they take more money from me than I would win in compensation and end up costing me? 

Their fees will usually be around 30% of any award you get, it's very rare you would end up getting nothing and owing them money. It would be something like handing back the car owing money and not paying it back and the debt being written off, the firm could offset the refund against the debt tat was unpaid but the CMC would bill you based on the sum awarded not the sum you get

123Designers98

Nasqueron said:

123Designers98 said:

I had signed up not know what I was doing in haste to slater and gordon on a no win no fee and worried now about the situation. Will they take more money from me than I would win in compensation and end up costing me? 

Their fees will usually be around 30% of any award you get, it's very rare you would end up getting nothing and owing them money. It would be something like handing back the car owing money and not paying it back and the debt being written off, the firm could offset the refund against the debt tat was unpaid but the CMC would bill you based on the sum awarded not the sum you get

So long story short, if I win even if it’s a small amount I won’t be out of pocket myself? Regretting signing up, mistake made and learnt from