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...

Read the full story:

'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? 

EmpyTempy

Hi, I stupidly signed up to a CFA with a claims management company who then passed it to CR Solicitors.  They are asking me to sign up to a new CFA and to prove my identification.  Would the original CFA be valid if I have to sign up to a new one with ID?

boymom2

Hi, my father had a policy which we paid off around 3 years ago. He no longer lives at the address the policy was under as he is now in a care home. As his power of attorney can I claim on his behalf? If so how is best to do this?

Grey_Critic

Who is/was the executor?

steph2212

I put my car finance complaints in using the template when all this started. I still haven’t had confirmation of a DCA but BMW finance have acknowledged both complaints. As the process has gone on BMW said to continue the complaint through the ombudsman. Yesterday I received an email from the ombudsman containing the following.

The Financial Conduct Authority (FCA) is consulting on an industry-wide compensation scheme for motor finance customers who were treated unfairly.

The proposed scheme would cover regulated motor finance agreements taken out by consumers between 6 April 2007 and 1 November 2024 where commission was payable by the lender to the broker. The FCA has found that many firms did not comply with the law or the disclosure rules that were in force when they sold motor finance loans.

The FCA consultation opened on 7 October 2025 and will close on 18 November 2025.

Your complaint will not be covered by the proposed FCA compensation scheme. This is because consumers who have already logged their complaint with the Financial Ombudsman Service will not be included in the scheme. We will progress the motor finance commission complaints we have as soon as we are able to

What does this mean exactly? As I’ve gone through them I now won’t receive compensation? 

Ectophile

It means you won't be in the proposed FCA compensation scheme.  You'll get whatever the ombudsman thinks you should get.