Renowned financial expert, Martin Lewis, has issued a serious warning to individuals who purchased a car or van through specific finance arrangements within a particular time frame. Lewis has emphasized the urgency of checking and lodging a claim before a potential ruling on car finance mis-selling is delivered by regulatory authorities.
The popular money-saving guru expressed his concern on the recent episode of his podcast, the ‘Martin Lewis Podcast’, stressing that there are only 10 weeks remaining before a crucial decision on car finance mis-selling is reached. He urged individuals who utilized a Personal Contract Purchase (PCP) or hire purchase agreement to purchase a car, van, camper van, or motorbike to take swift action.
The issue at hand revolves around discretionary commission arrangements, which significantly impacted purchases made between April 2007 and January 28, 2021. During this period, finance companies permitted car dealers to inflate interest rates without disclosing this information to customers. In return, the dealers received additional commission. Consequently, unsuspecting buyers ended up paying substantially higher interest rates without their knowledge, as they were unaware of the inflated rates and did not have the opportunity to negotiate or contest the terms.
Lewis stressed that this applies specifically to PCP deals and Hire Purchase Agreements for personal use and commuting purposes, with the exclusion of business use or leasing agreements. He highlighted the forthcoming regulatory ruling on September 25, which could result in firms being directed to refund excess interest payments to customers in the event of a finding of systemic mis-selling.
Encouraging individuals to act promptly, Lewis pointed out that a potential ‘timebomb’ may exist in relation to lodging claims, emphasizing the importance of submitting complaints without delay. Asserting the significance of this issue, he also referred individuals to a tool on his Money Saving Expert (MSE) website to determine their eligibility to make a claim.
In conclusion, the warning issued by Martin Lewis serves as a critical reminder for individuals who made vehicle purchases through certain finance arrangements during the specified time frame. Time is of the essence, and it is essential for affected individuals to proactively assess their eligibility to submit a claim and take the necessary steps within the stipulated timeframe.