Martin Lewis: Car finance mis-selling help – your questions answered

MSE_Emily

The financial regulator has announced its proposed car finance mis-selling redress scheme, with an average payout of £700 likely to be due on over 14 million car finance agreements made between 7 April 2007 and 1 November 2024. MoneySavingExpert.com founder Martin Lewis answers your questions about the scheme on the latest instalment of The Martin Lewis Podcast...

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Martin Lewis: Car finance mis-selling help – your questions answered

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born_again

Would it not more sense in the dedicated section, there already is?

BStubbins

Just a quick Google search suggests that "the FCA redress scheme is designed to apply regardless of loan size...".   Martin seems to think £25,000 is the limit under the credit consumer act.  Can anyone clarify/verify.   Thanks 

PHK

I would pause before doing anything. Martin's article has a couple of misunderstandings.

It's also worth pointing out that the scheme isn't finalised yet and a number of unforeseen flaws have been pointed out with the proposal. The FCA are reviewing and will make a final decision later on the year. 

MyRealNameToo

BStubbins said:

Just a quick Google search suggests that "the FCA redress scheme is designed to apply regardless of loan size...".   Martin seems to think £25,000 is the limit under the credit consumer act.  Can anyone clarify/verify.   Thanks 

The official consultation document is https://www.fca.org.uk/publication/consultation/cp25-27.pdf

The £25k limit on the CCA was removed in 2006 and the scheme starts from 2007

JessieByrne

Missselling 

Wording on some of my finance agreements

Can anyone advise would this wording imply misselling?

1. Annual percentage Rate of Charge(APR%) xxx%

This is the the total cost expressed as an annual percentage of total amount of credit.

THE APR is there to help you compare offers?

My delearship has never ever mentioned this statement ever

How can you compare other offers when you are sitting in front of the salesman with paperwork to sign?

And you dont even know about this?

2. Commission

We may pay commission or other renumeration to a supplying dealer or other intermediary who introduce you to us.

Again my delarship (salesman) has never ever discusssed/disclosed this to me, had I know that they do this 

I would have challenged it.

Any information would be most helpful

Jessie

Ergates

JessieByrne said:

Missselling 

Wording on some of my finance agreements

Can anyone advise would this wording imply misselling?

1. Annual percentage Rate of Charge(APR%) xxx%

This is the the total cost expressed as an annual percentage of total amount of credit.

THE APR is there to help you compare offers?

My delearship has never ever mentioned this statement ever

How can you compare other offers when you are sitting in front of the salesman with paperwork to sign?

And you dont even know about this?

2. Commission

We may pay commission or other renumeration to a supplying dealer or other intermediary who introduce you to us.

Again my delarship (salesman) has never ever discusssed/disclosed this to me, had I know that they do this 

I would have challenged it.

Any information would be most helpful

Jessie

1:  Your dealership never mentioned what?   The APR?  That's the interest rate of the loan, it seems very unlikely they'd not mention that.   "And you don't even know about this?" - don't even know about what?

2.  Did you get the finance agreement before you signed them?   Did you read them?  There are some commission types that, if not disclosed, might be counted as mis selling.  

born_again

JessieByrne said:

Missselling 

Wording on some of my finance agreements

Can anyone advise would this wording imply misselling?

1. Annual percentage Rate of Charge(APR%) xxx%

This is the the total cost expressed as an annual percentage of total amount of credit.

THE APR is there to help you compare offers?

My delearship has never ever mentioned this statement ever

How can you compare other offers when you are sitting in front of the salesman with paperwork to sign?

And you dont even know about this?

2. Commission

We may pay commission or other renumeration to a supplying dealer or other intermediary who introduce you to us.

Again my delarship (salesman) has never ever discusssed/disclosed this to me, had I know that they do this 

I would have challenged it.

Any information would be most helpful

Jessie

APR is on finance documents..
You did read them???

Any commission would be on finance agreement after 28-Jan 2021. Again dealer might not explain this, as you are expected to read any finance agreement you sign.