Martin Lewis issues new £1,100 car finance refund update after compensation decision delay

dailyrecord.co.uk:

Martin Lewis has announced that a major investigation into whether people overpaid on their car finance loans has been extended to next year, as the UK’s financial watchdog said it could decide to set up a scheme to compensate those affected.

The Financial Conduct Authority (FCA) said it was giving motor finance companies more time to respond to customer complaints.

The review was launched at the start of the year following concerns that a large number of people may have been overcharged for their car loans through Discretionary Commission Arrangements.

The probe was due to conclude at the end of September, but the consumer champion has told his 3 million followers on X that it will now be the end of May, 2025.He also added that finance firms now have until December next year to respond to any complaints, which he said would be “disappointing for those awaiting a decision” including the two million who have submitted a complaint using the online template at MoneySavingExpert.com (MSE.com).Martin also said that the FCA’s announcement “indicates there's a chance that in May it will launch a consultation on a redress scheme”.He explained that under that timeframe the “court will have decided on a key case by then and the move to December is so it'd be able to finish that consultation before firms have to put it in place”.Martin continued: “Clearly the delay is disappointing for those awaiting a decision, including the 2m who've submitted complaints via the MSE free tool.