Martin Lewis has opened up on how drivers should react if they are “fobbed off” by car finance firms amid a major investigation into possible wrongdoing.
The Financial Conduct Authority (FCA) is looking into “widespread misconduct” around discretionary commission arrangement deals.
It’s expected “millions” of road users who purchased a vehicle on finance before January 2021 could be affected with many expected to receive compensation payouts later this year.
Martin has previously warned any road users who feel they could be affected should send a complaint letter to their lender immediately.
Over 600,000 were sent to firms in just one week after a MoneySavingExpert template was uploaded online.
Firms may not yet have replied to motorists with companies allowed to get back to customers anytime within 28 days.
However, Martin warns it is likely some road users were simply being “fobbed off” as companies tried to cover their backs and limit the damage.
He claimed: “Told: ‘You had a DCA but…’ then a fob-off. Eg, ‘we don’t think we’ve done anything wrong’ and/or ‘complaint rejected, but you can go to the ombudsman’.
“This tactic was long a part of the bank charges and PPI dance, designed to put people off, and a few, especially smaller, firms may be trying similar here.
“Our main thought is don’t worry, as a) it’s confirmed you’ve had a DCA and b) for it to close your complaint, it has to log it, so arguably you’ve done all you need to until the FCA reports.
“The letter will say you can go to the ombudsman, but right now we think it’s safest to hold that until the FCA reports, though give us a few weeks to firm out tactics on that (there’s no harm in delaying for now).
“PS: We’ve seen some firms’ replies wrongly saying: ‘you’ve six months to go to the ombudsman’. That’s incorrect – for DCA complaints, it’s 15 months, so don’t feel pressured to do owt yet (we’re reporting those firms for incorrect info).” (sic)
The FCA is looking into motor finance firms after the Financial Ombudsman recently sided with two motorists who made complaints.
The FCA warned these rulings could prompt a “significant increase” in complaints from consumers to firms.
Martin has previously suggested as many as 40 percent of all complaints could be successful in receiving compensation.
The finance guru has calculated each payout could equate to around £1,100 meaning over £230million is already expected to be repaid by lenders.
