Martin Lewis has called on drivers to take action as they could be eligible for compensation from the car finance scandal.
The Money Saving Expert launched the car finance complaints tool in February last year, and helped submit more than one million complaints within weeks of it being introduced.
It helped drivers submit claims against brokers and car dealers who may have taken advantage of agreements to hike interest rates to earn a higher commission.
The car finance complaint tool has now been used more than 3.3 million times, with Mr Lewis and the Money Saving Expert team expanding the service to help more drivers.
The broadened tool now incorporates Contractual Ties and Unfairly High Commissions, which have been defined as mis-selling by the Financial Conduct Authority (FCA).
These will be available in addition to Discretionary Commission Arrangements (DCAs). These make up the bulk of the complaints and have been subject to action by the FCA.
The financial regulator announced last month that it would be launching a redress scheme for victims of the car finance mis-selling scandal.
It estimates that around 14 million unfair motor finance agreements could be included in the payout process, with people receiving an average of around £700 per arrangement.
READ MORE: Car finance scandal compensation scheme is ‘unfit for purpose’ as millions of drivers could lose out
Martin Lewis has called on drivers to take action if they believe they were impacted by the car finance scandal
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GETTY/PA
The scheme covers car finance agreements taken out between April 6, 2007, and November 1, 2024, in the event that commission was payable by the lender to the broker.
Under this definition, people who bought a vehicle through a PCP agreement or Hire Purchase could be eligible for compensation.
Martin Lewis said: “If you’ve not complained yet, while you needn’t do owt, it’s generally best to put in a DIY complaint now.
“While under the proposed redress scheme, firms will have to try to identify and contact all the people who were mis-sold, even if they don’t complain, and ask if they want to OPT IN.
“There is still a risk those who had older agreements, have moved house, or got married/changed name may miss out.”
Mr Lewis said he believes it is safer for motorists to put a complaint in “now”, with the easiest way being through the Money Saving Expert tool.
He explained that this would place these drivers into a category where everything is done automatically.
Motorists could be “paid out up to eight months quicker” as lenders must contact them to explain that the complaint is being processed.
The FCA outlined its plans for the car finance scandal compensation scheme last month
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PAThe FCA announced today that it would be extending the deadline on its consultation until December 12 to ensure it can receive as many responses as possible.
The total value of compensation is expected to cost lenders and brokers around £8.2billion, although this has been criticised by the All Party Parliamentary Group on Fair Banking.
It described the FCA’s proposed car finance redress scheme as being “unfit for purpose” as it protects lenders, rather than the victims of the mis-selling scandal.
Data from the APPG suggested that the proposed compensation of £518 is less than one-third of the £1,500 that victims could receive if they took their claim to court.