Martin Lewis unveils new tool to recover £1,000 as millions could be owed in cash

MARTIN Lewis's MoneySavingExpert has unveiled a new tool that will help motorists claim back thousands of pounds.

It comes after the Financial Conduct Authority (FCA) launched an investigation into whether customers were overcharged for historic car finance loans.

Millions who bought a car, van or motorbike on finance before January 28, 2021 could owe billions of pounds in total.

Now, Martin Lewis's consumer website has launched a new tool that allows individual drivers to file a complaint.

Martin Lewis said: 'The average payback will probably be over a thousand dollars.

'The big question, if the regulator rules as expected, is whether it will be single- or double-digit billions that have to be paid back to the people.

“I would encourage anyone who had car finance before January 2021 to read the guide and use the free tool as soon as possible to ensure that when payments come due, you don't miss out.”

What is the Auto Finance Discretionary Commission Scandal?

The Car Finance Discretionary Commission scandal affects those who bought a car, motorcycle or van with finance before January 28, 2021.

After this date, the city's watchdog, the FCA, banned lenders from using “discretionary commission arrangements” (DCAs).

This meant brokers could no longer increase interest rates on car finance loans, driving up their commissions.

Anyone who took out a vehicle with financing before this date could have wrongly paid more than necessary.

The FCA has now launched an investigation to see how many people have been affected.

Consumer expert Martyn James previously told The Sun that “thousands and thousands” of people may have been overcharged.

The MSE website also has a handy checklist on who may be eligible for cash back.

How do I claim?

It is not clear at this stage whether customer complaints will be dealt with on an individual basis or on a larger scale, as the FCA's investigation is yet to be completed.

Finance firms do not have to deal with complaints until September 25, when the FCA will report the findings of its investigation.

But you must start the complaints procedure now in case a deadline is imposed in the future.

You can use the MSE tool, which allows you to compose a complaint email.

Or you can complain directly to your car finance company.

In the complaint, you should ask whether you were overcharged because your broker received a commission and ask the company to correct it if that happened.

If you are not satisfied with the company's response, you can submit your complaint to the Financial Ombudsman (FOS) free of charge.

You won't need to rely on a claims agency throughout the process, as these companies typically take a percentage of the payout you receive.

In other news, Martin Lewis has revealed how families can get Ikea meals every week from just 45p.

And why you don't have to worry about your credit score anymore.

Do you have a money problem that needs to be solved? Get in touch by emailing money@the-sun.co.uk.

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