From petrol costs, to insurance and MOTs, owning a car takes a big chunk out of your monthly income – especially if you’re paying for the vehicle itself on finance. But now, Martin Lewis Money Saving Expert (MSE) has revealed how you could potentially claw back thousands in money owed. If you bought a car, van, campervan or even a motorbike on finance, you could be able to claim compensation, as the FCA (Financial Conduct Authority) has now launched an investigation into Discretionary Commission Arrangements (DCAS).
A DCA is when a finance firm allows car dealers to increase their interest rates without informing customers – which earns them a huge commission, Martin explained in his newsletter. And, in turn, that could mean you’ve hugely overpaid – for literally no reason at all. In fact, the data from FCA suggests that 40% of car finance agreements had DCAs between April 2007 and January 28 2021, while the latest survey stats from MSE project a much higher percentage of DCA usage at 74%.
Martin is now urging owners to complain via MSE’s free tool , with his theory that, once the FCA’s investigation closes on September 25, that could be a cut off point – meaning only those that complained prior to that date will receive compensation. Since MSE launched their tool in February, a staggering 1.7 million complaint letters have been sent.
You’re eligible to complain if you purchased a vehicle on finance between the above dates, for agreements made through Person.
