Martin lewis issues car finance update ahead of appeal verdict

Martin lewis issues car finance update ahead of appeal verdict


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THE MONEY SAVING GURU GAVE AN UPDATE ON THE LOOMING DECISION DURING HIS SHOW LAST NIGHT 13:32, 21 May 2025 Martin Lewis has issued an update for people waiting to find out whether they are


eligible for compensation for mis-sold finance agreements. The Martin Lewis Money Show returned last night, with potential for people to claim £1,100 in compensation linked to Discretionary


Commission Arrangements (DCAs). The consumer champion updated viewers on the current situation around compensation following an appeal heard at the Supreme Court last month, with a verdict


expected in July. Responding to questions about lodging claim despite the Financial Conduct Authority (FCA) previous messaging of automatic compensation, Martin urged viewers to submit their


claims to get ahead of administrative proceedings, the Express reports. He added that one could also await the court's decision, but underlined the advantage of using a free online


claiming tool like the one found at MoneySavingExpert.com here. During the show, a viewer named Lisa sought clarity on car finance and DCAs claiming. She asked: "It would be great to


get an update on car finance, I believe I could be eligible due to having cars on DCAs but never got round to putting my claim in. "I have now read that if you are due any pay out, you


will be contacted and repaid automatically, without filling anything in. Is this right?". Martin said: "Yes, basically around 2.5 million people have put DCA claims in.


Discretionary Commission Arrangements, that's effectively where car dealers charge higher interest than they needed to and they got more commission for doing so and the regulator (FCA)


is investigating that. "The most important thing to understand is car finance claims are currently on hold because the Supreme Court is looking at a case right now, it's already


heard evidence on it and we're waiting for a decision, now no-one knows when that will come - we just don't know." However, Martin hinted that those in the loop are suggesting


a verdict could be reached by July, stating: "The people in the know are telling me they're hoping it will be July, so I'm going to say July-ish is the probably rough time


span". He also pointed out that until the Supreme Court makes its ruling, "nothing else happens". Martin went on to explain that, according to the FCA, any potential


reimbursements would be processed automatically, meaning individuals would not need to submit a claim themselves. Still, he said: "I would still suggest if you want to get ahead of the


queue and make sure all the admin is done right and they have all your details and they're all up-to-date. I would still probably just go and put your claim in now, but only use a free


service." Article continues below Martin rounded off with guidance for those willing to bide their time, saying: "But you don't have to, if you just want to wait, if you are


eligible you should be paid out - if the Supreme Court rules saying that car finance and the way it was done should be paid out." He has previously estimated that around 40 per cent of


car finance deals arranged between April 2007 and January 28, 2021, may be eligible for a payout of approximately £1,100. As a result, anyone who took out finance with the 'hidden DCA


charge' for a van, campervan, or motorcycle during that period may be in line for a refund.