Martin Lewis has said thousands of drivers could get a £1,100 cash payout – even if they have died.
An investigation was opened by the Financial Conduct Authority into car finance misselling, with Discretionary Commission Arrangements in car finance leading customers into overpaying on their interest without knowing.
This was further expanded by a landmark ruling in the Court of Appeal which found that almost all car finance policies may have been missold.
Speaking on the latest episode of The Martin Lewis Money Show Live on ITV1, the Money Saving Expert founder explained: “Lenders let brokers and car dealers increase the interest rates to increase their commission.
“Millions overpaid without knowing, so you won’t know if it happened to you.”
He explained that the average claim could be worth £1,100, and represents the difference between the minimum interest and the amount you were actually charged.
Jeanette Kwayke asked him a question from a viewer, who said: AA question coming in from Susan here.
“Now Susan is asking this: My husband had PCP on a car he bought in 2016. He’s since died (really sorry to hear that) but can I claim in my name?”
Martin then replied: “Presuming you are the executor or the primary beneficiary of the will, absolutely yes, the claim – forgive the phrasing – does not die with the person.
“It can be passed on as part of the estate.”
Martin then said that for DCA claims, car, van and motorbikes or camper van drivers could be eligible to claim, if they had finance between April 2007 and January 28, 2021.
The finance types eligible are Personal Contract Purchases (PCP), and Hire Purchase agreements but not Personal Contract Hire (which is usually called leasing).
The vehicle must be for personal use and still applies even if you no longer own it, and if you took out multiple deals in that period you could be due multiple payouts.
The only way to check if you could be due money back is to contact the company you bought car finance from (or your relative did, if they have since died) and formally ask if you had a DCA on your policy.
If it did, you then ask the company to log it as a mis-selling complaint.
