Millions of Motorists Eligible for Compensation Amid Financial Conduct Authority Review

Millions of drivers who purchased cars on finance between 2007 and 2021 may be in line for compensation after the Financial Conduct Authority announced its intention to consider a compensation scheme. The scheme could cost up to £18 billion, with those affected needing to put in a complaint to determine eligibility. Martin Lewis, a well-known consumer finance expert, has issued a warning to motorists, advising them to seek out potential claims.

Key Takeaways:

• Discretionary commission arrangements (DCAs) were banned in January 2021, affecting millions of motorists who purchased cars on finance between 2007 and 2021.
• Those affected may be eligible for compensation, with a potential scheme costing up to £18 billion.
• Motorists need to put in a complaint to determine eligibility and potentially claim compensation.
• Martin Lewis warns that using a claims management company or law firm may result in the loss of 30% of any compensation received.
• Drivers can use Martin Lewis's free tool on Money Supermarket to check for a DCA and log a complaint.
• The Financial Conduct Authority aims to make the scheme easy to participate in, without needing a claims management company or law firm.
• Factors such as 0% interest deals or small amounts of interest may affect eligibility for compensation.

Statistics:

• Up to £18 billion: potential cost of the compensation scheme.
• 2007: year discretionary commission arrangements began.
• 2021: year discretionary commission arrangements were banned.
• 15 years: time period during which DCAs were active.
• 30%: potential loss of compensation when using a claims management company or law firm.

Sources:

• Good Morning Britain
• Financial Conduct Authority
• Martin Lewis, Money Supermarket