New Martin Lewis MSE car finance tool helps people reclaim £1,100 in minutes (2024)

This week’s episode of The Martin Lewis Money Show Live focused on a potentially new mis-selling scandal that could become the “UK’s second biggest reclaim after PPI”, according to its award-winning host. Martin Lewis took viewers through the complicated process that could see millions of people who purchased a car, van, camper van or motorbike on finance before January 28, 2021, receive more than £1,100 in compensation.

The consumer champion told STV viewers on Tuesday night that to make it easier for people to make a complaint and begin the process, he and his team at MoneySavingExpert.com (MSE.com) had created a template letter that anyone can access and use. Incredibly, after just one day since the template went live, it has been used by 262,500 people.

Martin took to social media to share the update and encourage more people not to miss out, even though any decision by the Financial Conduct Authority (FCA) on whether they will be due money back from an inflated discretionary commission arrangement, will not be announced until September 25, 2024.

Posting on X (formerly Twitter), he posted: “Car finance reclaiming update. Staggeringly after just 1 full day of our free complaint tool being live...

“262,500 complaint emails have been sent. It's estimated 40% will've had hidden commission. Typical overcharge was £1,100 per agreement.

“So predicted payout will be £115,000,000 (that's conservative as many letters are multi-agreement).”

MSE.com’s car finance commission reclaim guide explains the whole process and reasons behind their new campaign to help millions of motorists get back around £1,100, although this figure could be much higher.

The free car finance reclaim guide and tool also generates a bespoke letter drafted by Martin Lewis, to help those who purchased a vehicle using finance claim back hidden and unfair commission. Anyone who bought a car, van or motorbike with a finance agreement before 28 January 2021 could be affected and should look at getting a complaint logged as soon as possible.

Top Money Stories Today

  • DWP confirms State Pension pay rates
  • Sate Pension bank account monitoring
  • PIP claim could backdate other benefits
  • Boost Attendance Allowance by £134

Martin Lewis said: "These are staggering numbers, bigger even than the final days in the run up to the PPI deadline.

"To put it in context, of the 262,500 complaint emails that have been sent via our free tool, it’s estimated 40% of those will have had the hidden discretionary commission arrangements on them. The typical overcharge – which is likely to be paid back once the FCA reports in September – is £1,100 per agreement. So that would mean a conservative predicted payout of £115,000,000 – conservative as many of the emails cover two, three or four agreements with the same firm.

"I was expecting 50,000 on the first day, which was still huge. This is off the charts and means this reclaim campaign is likely to be bigger than bank charges, and second only to PPI in scale with many billions potentially to be paid out.

"I’d urge anyone who got a car, van, camper van or motorbike on finance before 28 January 2021 to check and get their complaint in soon - the sooner you do it, the less risk of being timed out later."

Get the latest Record Money news

New Martin Lewis MSE car finance tool helps people reclaim £1,100 in minutes (5)

Join the conversation on our Money Saving Scotland Facebook group for energy and money-saving tips, the latest benefits news, consumer help and advice on coping with the cost of living crisis.

Sign up to our Record Money newsletter and get the top stories sent to your inbox daily from Monday to Friday, including a special cost of living edition on a Thursday - sign up here.

You can also follow us on X (formerly Twitter) @Recordmoney_ for regular updates throughout the day.

NEW - Get our money news alerts on your phone by joining our Daily Record Money WhatsApp community.

You can read the full guide and follow the sep-by step process on the MSE.com website here.

Join our Daily Record Money WhatsApp community here to receive alerts on the latest money news from benefits to shopping deals.

Story Saved

You can find this story in My Bookmarks.Or by navigating to the user icon in the top right.

New Martin Lewis MSE car finance tool helps people reclaim £1,100 in minutes (2024)
Top Articles
Latest Posts
Recommended Articles
Article information

Author: Frankie Dare

Last Updated:

Views: 6356

Rating: 4.2 / 5 (53 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Frankie Dare

Birthday: 2000-01-27

Address: Suite 313 45115 Caridad Freeway, Port Barabaraville, MS 66713

Phone: +3769542039359

Job: Sales Manager

Hobby: Baton twirling, Stand-up comedy, Leather crafting, Rugby, tabletop games, Jigsaw puzzles, Air sports

Introduction: My name is Frankie Dare, I am a funny, beautiful, proud, fair, pleasant, cheerful, enthusiastic person who loves writing and wants to share my knowledge and understanding with you.