Overview

• The FCA has concluded that around 44% of UK motor finance agreements from April 2007 to November 2024 may have been mis-sold, affecting roughly 14 million deals.
• Mis-selling spans three categories outlined by the regulator: discretionary commission arrangements, contractual ties, and unfairly high commission.
• Under the proposed scheme, DCA cases are slated for automatic payment unless customers opt out, while other categories will generally require consumers to opt in.
• Martin Lewis urged people to submit complaints now using free MoneySavingExpert templates, noting that prior complainants will be easier for firms to contact and process.
• Coverage cites about four million deals already complained about and reports that millions have used the template letters, leaving a large pool of potential new claims before firms contact customers within months of the scheme’s launch.