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The Martin Lewis Money Show Live made a comeback on Tuesday, with the money expert giving an update for those eagerly awaiting news on potential compensation payouts of up to £1,100 linked to undisclosed Discretionary Commission Arrangements (DCAs).
The financial guru updated viewers on the current situation regarding the appeal that was heard by the Supreme Court in April, mentioning that a verdict is expected around July. Responding to queries about lodging a claim despite the Financial Conduct Authority’s (FCA) earlier notice of automatic compensation, Martin Lewis urged viewers to submit their claims promptly to get ahead of administrative proceedings, as reported by the Daily Record.
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 payout, 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.”
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.
