MSE News: Car finance mis-selling payouts of £700 each likely for 14 million people

MSE_Abby

Car finance mis-selling compensation is one step closer as the financial regulator has revealed the details of its proposed redress scheme. MoneySavingExpert.com founder Martin Lewis takes you through it in his new video...

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'Martin Lewis: Car finance mis-selling payouts of £700 each likely for 14 million people – are you one of them?'

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Daffers74

I used the template and sent it off to the car company . They replied saying I did have a DCA and a PCP and they would be in touch after the 4th December .I bought my car in March 2007 and still have it . When I got my lump sum from my private pension in 2009 I paid off what was left on the car which was about £3.500 . I kept the letter saying I had paid it off so had all the details to send to the car company . Will this make a difference to my claim 

MyRealNameToo

Daffers74 said:

I used the template and sent it off to the car company . They replied saying I did have a DCA and a PCP and they would be in touch after the 4th December .I bought my car in March 2007 and still have it . When I got my lump sum from my private pension in 2009 I paid off what was left on the car which was about £3.500 . I kept the letter saying I had paid it off so had all the details to send to the car company . Will this make a difference to my claim 

The scheme hasn't been agreed yet but likely yes, you reduced the interest by paying it off early so you won't have been overcharged interest as much as if you had continued to make monthly payments. That said your DCA could be positive (ie they reduced the interest rate) in which case you're owed nothing anyway. 

Nasqueron

MyRealNameToo said:

Daffers74 said:

I used the template and sent it off to the car company . They replied saying I did have a DCA and a PCP and they would be in touch after the 4th December .I bought my car in March 2007 and still have it . When I got my lump sum from my private pension in 2009 I paid off what was left on the car which was about £3.500 . I kept the letter saying I had paid it off so had all the details to send to the car company . Will this make a difference to my claim 

The scheme hasn't been agreed yet but likely yes, you reduced the interest by paying it off early so you won't have been overcharged interest as much as if you had continued to make monthly payments. That said your DCA could be positive (ie they reduced the interest rate) in which case you're owed nothing anyway. 

Or neutral as well, i.e. available but not used

kassy64

I paid my finance agreement off the month after taking it out, as I only took it to get a substantial deposit contribution and 3 x free services. So, from above it will hardly be worth my while as only 1 or 2 months interest paid in total. Is that correct? 

aberdas

My father obtained a black house HP loan in 2018 but died in 2022. Though his assets passed onto my mother, I am not sure if she can claim anything. Can she claim on his behalf? If not, what else could she do?