Martin Lewis issues urgent reminder to drivers who may be owed £1,000s – use his free tool to claim

MARTIN Lewis' MoneySavingExpert.com (MSE) has issued an urgent reminder to drivers who could be owed thousands of pounds.

The consumer website is encouraging motorists to check if they're eligible for cash after unknowingly paying out too much on car finance.

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It comes as regulator the Financial Conduct Authority (FCA) looks into thousands of allegedly dodgy deals handed out before January 28, 2021.

MSE claims millions of customers could be owed billions between them in total.

But instead of using a claims management firm to claw back any cash, the consumer website has launched a free-to-use tool which reveals if you qualify.

Martin Lewis previously said: "The average payback will likely be over a grand.

"The big question, if the regulator rules as expected, is whether it’ll be single or double digit billions that’ll have to be paid back to people.

"I’d urge anyone who had car finance before January 2021 to read the guide and use the free tool as soon as possible to ensure if payments happen, you don’t miss out."

What is the Car Finance Discretionary Commission Scandal?

The Car Finance Discretionary Commission Scandal affects those who bought a car, motorbike or van on finance before January 28, 2021.

After this date, city watchdog the FCA banned lenders from using "discretionary commission arrangements" (DCAs).

This meant brokers could no longer increase interest rates on car finance loans, which in turn saw their commission bumped up.

Anyone who took out a vehicle on finance before this date could have been unfairly paying more than they should have.

The FCA has now launched an investigation to see how many people have been impacted.

MSE's website has a useful checklist on who might be in line for money back.

It also has a list of firms who are unlikely to have handed out dodgy deals and therefore don't owe customers money.

How do I claim?

It's not clear at this stage whether customer complaints will be dealt with on an individual basis or on a larger scale as the FCA's investigation is yet to conclude.

Financing firms don't have to deal with complaints until September 25, when the FCA is scheduled to report the findings of its investigation.

But, you should start the complaint procedure now in case a future time limit is put in place.

You can either use the MSE tool, which helps you draft a complaint email.

Or, you could complain to your car financing company direct.

In the complaint, you should ask whether you were overcharged due to your broker getting paid commission and ask the company to correct this if that is what happened.

If you're not satisfied with the company's response, you can take your complaint to the Financial Ombudsman Service (FOS) for free.

You don't need to use a claims company throughout the process as these firms usually take a percentage cut of any payout you receive.

In other news, Martin Lewis issued warning to anyone who has been divorced over a simple blunder which could see your ex get your pension.

Plus, a further warning to pet owners to make a key move or risk a £500 fine.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

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