Motorists could be targeted by scammers within months as fraudsters will aim to convince road users they are owed “thousands” in compensation.
It comes after the Financial Conduct Authority (FCA) is investigating “widespread misconduct” at motor finance firms, a probe highlighted by Martin Lewis.
The financial specialists are looking into whether those purchasing car finance deals were misled over discretionary commission payments.
The Money Saving Expert has previously warned “millions” of motorists who purchased a car before 2021 could be affected
Meanwhile, estimates have suggested lenders will be forced to pay back billions to owners when the study is over.
However, money guru Matt Allwright has warned talk of potential payouts could spark interest among scammers to make some quick cash.
He suggested like with the PPI case, drivers could be called by fraudsters desperate to get information out of road users.
Speaking to BBC’s Morning Live, Matt said: “We do know what happens in these cases is claims management companies start getting involved, remember PPI. The adverts were everywhere. Obviously they are going to take a cut, yeah.
“We are talking about thousands of pounds. The other thing we have to say is not only are the claims management companies looking to make a buck out of this, scammers will be all over this trying to persuade you that you’ve got a case and then get details.
“All the things we know they do, fishing, all of these things, So in the first instance contact your lender, then after that the Financial Ombudsman Service and then FCA to let them know the scale of the problem.”
The FCA is looking closer into car finance companies after the Financial Ombudsman Service recently ruled in favour of two motorists taking cases against firms.
This is likely to prompt a “significant increase in complaints from consumers to firms”.
The FCA explained that if they find widespread misconduct, they will identify how best motorists will receive an appropriate settlement.
They promise this will be done in an “orderly, consistent and efficient way”.
Although Martin Lewis has not given motorists a time frame on when they could start receiving information, Matt suggested decisions could be months away.
Matt added: “September is going to be an important part in this story, an important chapter. That is when we know when the FCA concludes their investigation we will have a better idea of what plan they intend to take.
“Are we going to have a formulated compensation system where people can just approach? Hopefully, that will make it easier for people.”
