Motorists who financed their vehicles through major lenders like Barclays and Santander might be on the verge of receiving a windfall potentially worth thousands. This comes as part of an extensive probe into finance agreements prior to February 2021, amid allegations that drivers were overcharged.
A staggering 1.7 million enquiries have been lodged by UK drivers after a campaign spearheaded by money-saving expert Martin Lewis. Among the finance firms that could face hefty payouts are Barclays, Santander, Black Horse, VW Financial Services, MotoNovo, BMW Financial Services, and Ford Financial Services.
Those who entered into finance arrangements before February 2021 have been encouraged to reach out to their finance provider to check if they’ve paid over the odds. The ongoing investigation centres around Discretionary Commission Arrangements (DCA), which may have led to inflated charges for some customers.
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There’s still time for drivers to lodge a claim before the September deadline when the inquiry is set to wrap up. The average compensation is estimated at £1,500, but there’s a chance some could receive substantially more, reports Birmingham Live.
Research conducted by Martin Lewis’ MoneySavingExpert has revealed that thousands have confirmed having a DCA after making a claim, opening the door to possible reimbursements.
Martin Lewis himself has commented: “The clock is ticking for the financial regulator, the FCA, to make its decision on car finance mis-selling. Since the investigation was announced in January, 1.7m complaints have been made via our free tool alone.”
“That investigation is due to conclude on September 25, and as a conservative estimate, if the FCA rules in favour of mass payouts, that could equate to £750,000,000 being repaid for complaints made via the tool.”
He added: “You may be able to claim £1,000s back as the FCA is amid a huge investigation into Discretionary Commission Arrangements (DCAs).”
“These DCAs are where finance firms let car dealers pump up interest rates, without customers being told, and then bunged ’em extra commission if they did. This likely meant huge numbers overpaid without knowing.”