The car finance scandal is estimated to have impacted two million Brits – and it could mean that those affected are owed payouts** according to My Claim Group
Brits who bought a car on finance could be owed a payout** after it has emerged that lenders were paying undisclosed “secret” commissions to car dealerships.
This meant that car dealers could determine the interest rates on finance deals, with an incentive to offer higher interest because it earned them a higher commission. It means that Brits could have been signing up for finance agreements with interest rates that were higher than necessary.
According to claims management firm My Claim Group, that could mean some Brits who bought a vehicle before 28 January 2021 could be due payouts of up to £4,000** on average.
Now, the firm has revealed the top 10 cities where they’re seeing the most Brits checking to see if they’re due a payout – and you can see if yours has made the cut.
The top 10 cities are:
- London
- Glasgow
- Manchester
- Birmingham
- Liverpool
- Nottingham
- Bristol
- leeds
- Sheffield
- Leicester
The car finance scandal kicked off in January 2021, when the Financial Conduct Authority (FCA) stepped in and prohibited discretionary commission models to protect consumers. However, further investigations found that the problem has been going on as early as 2007, so there’s been a further examination of past lending activities.
By October 2024, the Court of Appeal declared that the non-disclosure of commissions on car loans was illegal. The financial fallout for lenders has been colossal, prompting the government to step in, with UK Chancellor Rachel Reeves voicing concerns about the wider economic implications. However, claims management firms like My Claim Group are urging consumers to lodge complaints.
If you think the scandal may have impacted you, visit the My Claim Group website to find out more information and begin the easy process to discover whether you are owed a payout**.
My Claim Group is a trading name of the Claims Protection Agency Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 836470). *My Claim Group will undertake a free check at no cost to you on your behalf to assess if you may have a vehicle finance claim. *** If you proceed, our panel solicitors work on a no win, no fee basis (subject to exclusions, for full details click on: https://myclaimgroup.co.uk/no-win-no-fee). Solicitor fees are up to 36% inc VAT. We receive a fee after a successful payout or a referral fee from your solicitor and this does not affect the compensation you will receive. You do not need to use a claims management company to make a claim; you can do this yourself for free by contacting the car dealership or finance provider and if that is not successful you can complain to the Financial Ombudsman Service. **See link for the FCA reference, solicitor fee tables & average valuations: https://myclaimgroup.co.uk/dca
