Martin Lewis issues huge car finance claim update as payout could be on same scale as PPISource: Good Morning Britain
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00:00Yeah, so earlier in January this year, the regulator announced that anyone who had had
00:06a discretionary commission arrangement on their car finance, which is where dealers
00:10could increase the interest on your car finance dealer in order to get more commission.
00:15It was investigating and it was urging people to put in complaints as they may be able to
00:19get that money back, which could be large.
00:21Now, then two weeks ago, we had one of those moments where people who look at a subject
00:25just go, what?
00:27And that was because the Court of Appeal ruled on Car Finance Commission, I just need to
00:31read you the statement, consumers need to know all material facts, including the amount
00:37of commission.
00:38And that means it was no longer just about discretionary commission arrangements, which
00:43was 40%.
00:45We've had an announcement from the regulator today saying it is extending the hold on complaints,
00:50which means things are going to take longer because it's waiting the Supreme Court of
00:53announcement.
00:54But when you read within that, it's now saying there is a hold on firms dealing with all
00:59Car Finance Commission complaints, not just the 40% who had those discretionary commissions
01:04where the dealer could increase interest, but all Car Finance Commission complaints.
01:09So it is effectively paving the way for all those complaints to be investigated if there's
01:17a Supreme Court ruling that upholds the Court of Appeal, which would mean potentially anyone
01:23who has had Car Finance, because all of them had commission on, is may well be eligible
01:29for a payout.
01:30It's even at the moment saying everybody should be putting complaints in, not just those with
01:34discretionary commission arrangements.
01:36So this over doubles the number of eligible people.
01:38To put this in perspective, my tool and money saving expert alone for complaining has already
01:43had two and a half million complaints put through.
01:46It was already predicted that this could be a payout of eight to 12 billion pounds.
01:52And now effectively, and it will all depend on the Supreme Court upholding the Court of
01:56Appeal ruling, this could potentially more than double the number of people who were
02:01involved in all this.
02:03And you will be talking out, if it all were to go through, and there are a lot of ifs
02:06in there, a PPI scale of payouts potentially coming through, which, of course, has some
02:12very serious knock on effects to the car finance industry.
02:14Martin, just briefly, who would be affected?
02:18What dates?
02:19How to put in a complaint or claim?
02:23Well, if you had one of those discretionary commission arrangements, which you won't know,
02:27the only way to find out is by complaining to see if you had one of those, then you should
02:31be putting in a complaint now.
02:33Other people, I need to be honest, this broke minutes ago.
02:37I'm going to be rewriting my tool to allow other people to complain and put in a provisional
02:41complaint so you don't go through a time bar.
02:44But what it's looking like, cursory, it's only just happened, is anyone who's had car
02:48finance.
02:49But I need to see the dates that are being specific.
02:51More of this is going to come out.
02:52But it's just everybody involved, keep your eye on this, listen to what's going on.
02:56This is big.