New Martin Lewis car finance letter warning to people hoping for £1,100 refund

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A compensation expert is reminding people who use the template letter to do one key thing with it.

Millions of claims could be lodged by drivers who may have overpaid on their car finance, as the emerging issue has the potential to be “on par” with the PPI scandal, a consumer compensation expert has said. The Financial Conduct Authority is currently reviewing whether people could be owed compensation for being charged too much for car loans and is due to publish its findings on September 25, 2024.

However, Mr Evans suggested that while many people will have downloaded the template complaint letter available for free on MSE.com, it may not mean that they will all have taken the next step of sending it to their lender. The PPI scandal saw UK banks pay out billions of pounds in compensation to customers who were mis-sold personal protection insurance from the mid-1990s.

This is likely to cause a “large headache” for car finance companies, Mr Evans said. Meanwhile, the chief executive of the FCA, Nikhil Rathi, recently downplayed comparisons with the long-running PPI redress. He said he did not anticipate the car finance issue “playing out as PPI did”, partly because the watchdog has intervened earlier.

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New Martin Lewis £1,100 car finance refund update hints at payouts on the wayMore than 1.2 million people have used the online complaints letter template to start their claim for £1,100.
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