Martin Lewis reveals thousands of motorists are owed £1,100 over ‘hidden’ fee (Image: Shutterstock)
revealed how a large number of British can claim an average of £1,100 back charged under a “hidden” fee. The money is for those driving motor vehicles inluding cars, vans, motorbikes and camper vans with finance taken out between April 2007 and January 28, 2021.
According to the expert, it applies even if the person has passed away or if the vehicle is paid off.
The Financial Conduct Authority (FCA) has initiated a significant investigation into undisclosed and unfair car finance commissions.
This inquiry could result in billions of pounds in overcharged interest being reimbursed to thousands of affected customers, he explained on
Mr Lewis said: “Did you buy a car, van or motorbike on PCP or Hire Purchase (not leasing) before 28 January 2021? If so, you could be due £1,000s back. In about 40 percent of car finance deals, there were hidden ‘discretionary commission arrangements’.
Mr Lewis explained how motorists could end up paying more (Image: Getty)
“This is where lenders allowed brokers & car dealers to up the interest to increase their commission – so you overpaid, without knowing.”
The FCA has extended the timeframe for motor finance companies to address complaints related to discretionary commission arrangements submitted after November 17, 2023.
While the FCA encourages firms to progress with handling complaints, they are not yet required to make final decisions.
The FCA initially planned to release findings from its investigation on September 25, 2024, but the timeline has now shifted.
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The next steps will be outlined in May 2025, with a final deadline of December 2025 for firms to resolve all complaints.
He continued: “Even with the FCA’s pause in place, we think it’s worth logging a complaint now to help reduce the risk of being ruled out if a future time limit is imposed. Plus a time-logged complaint may be useful if it were to go to court in future.
“When the FCA announced that it was delaying its decision on car finance mis-selling from September 2024 to May 2025, I spoke to Sheldon Mills from the FCA, who told me: ‘It is too early to say whether any redress intervention will be necessary, but based on our work so far, it is more likely than when we started our review’.
“Since then, there’s been a landmark Court of Appeal ruling (details below), which means I think it’s best to act as if a scheme is coming.”