close
close

Map lays bare Britain’s car finance scandal and reveals areas with the most bad sales schemes – are YOU owed compensation?

Map lays bare Britain’s car finance scandal and reveals areas with the most bad sales schemes – are YOU owed compensation?

A NEW map reveals the whereabouts of top-selling car finance claims which you could use to find out if you are owed compensation.

Exposing corrupt car finance in Britain, a staggering 1.4 million claims are believed to be part of the multi-million pound scandal.

The new data has put a focus on specific areas with victims potentially spread across the country.

A estimated £13 billion could be owed in compensation payments and experts fear this figure could double.

Lawyers at Courmacs Legal described the “national scandal” as a situation that the Financial Conduct Authority “has failed to control.”

The CEO of the consumer complaints law firm revealed the data and explained what the findings meant.

Darren Smith said online mail: “Consumers were never informed about the secret commissions that inflated their costs and we are in the middle of a cost of living crisis in which many are already struggling.

Millions were denied the opportunity to make informed decisions about their finances, and many paid thousands more than necessary.

Motorists are concerned that they may be eligible for claim compensation You can now choose to find out through any of the numerous claims management companies.

So far, Scotland has seen the most claim money According to Courmacs, almost 200,000 more people are likely to take action.

The country has 18 of the top 20 areas for claimants, with the region between Edinburgh and Glasgow appearing to have the biggest advantage. highest concentration of all British people.

Around 168,137 people in the north west of England have already lodged their claim, making the area the second highest for total statements.

Three essential checks before buying a second-hand car

Reportedly, 62,144 people have turned up in Northern Ireland and just over 15,000 more have been housed from Wales.

Greater London came in seventh on the list, while the West Midlands came third.

Meanwhile, the southeast was the third largest area for the British with 155,387 claims.

Sittingbourne and Sheppey, kentsaw the highest number with 2,642 residents making a say.

It comes after Court of Appeal decision last month where the judges declared how dealers did not adequately inform drivers about the commission payments often found in financial agreements.

It is estimated that more than a million drivers are owed compensation

1

It is estimated that more than a million drivers are owed compensationCredit: Getty

What is the FCA investigating and who is entitled to compensation?

By Jacob Jaffamotor reporter

What is being investigated?

The FCA announced in January that it would investigate allegations of “widespread misconduct” relating to discretionary commission arrangements (DCAs) in cars. loans.

When you buy a car with financing, you are effectively loaned the value of the car while you pay it off.

These loans are charged interest payments and are often arranged on behalf of the lenders by brokers (usually the financial arm of a concession.

These brokers earn money in the form of a commission – a percentage of the loan’s interest payments.

DCAs allowed brokers, to some extent, to increase the interest interest rate on a loan, which in turn increased the amount of commission they received.

The practice was banned by the FCA in 2021.

Who is entitled to receive compensation?

The FCA estimates that around 40% of car sales may have been affected before 2021.

There are two criteria you must meet to have the opportunity to receive compensation.

Firstly, you must make a claim in relation to a finance agreement for a motor vehicle (including cars, vans, motorcycles and motorhomes) which was agreed before January 28, 2021.

Secondly, you must have purchased the vehicle through a mechanism such as personal contract purchase (PCP) or hire purchase (HP), which make up the majority of finance agreements and mean that you own the vehicle at the end of the agreement .

Drivers who rented a car through something like a personal rental agreement, where the car is returned at the end of the lease, are not eligible.