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FCA Extends Car Finance Redress Consultation as Martin Lewis Urges Drivers to Complain Now

The proposed scheme would cover agreements from 2007 to 2024 with payouts expected to start in early 2026.

Overview

  • The FCA moved the consultation deadline to 12 December to take more feedback before finalising a compensation plan designed to be simple to use without claims firms.
  • MoneySavingExpert’s complaints tool has been used more than 3.3 million times and now includes Contractual Ties and Unfairly High Commissions as well as discretionary commission cases.
  • Submitting a DIY complaint now can place consumers in a processing queue that lenders must acknowledge, which Martin Lewis says could bring payments up to eight months sooner.
  • The consultation scope spans PCP and hire purchase deals from 6 April 2007 to 1 November 2024, with FCA estimates of roughly 14 million affected agreements and average payouts around £700.
  • The All-Party Parliamentary Group on Fair Banking says the plan underpays versus potential court awards, while Lewis reassures that raising a complaint will not jeopardise current finance contracts.