FridayOL

Millions of Kiwis who took out car finance before 2021 could be in line for a significant refund, thanks to a landmark Supreme Court case. Consumer champion Martin Lewis is providing updates, and the potential payout could be as much as £1,100 per person!

What's Happening? The case centres around undisclosed commissions paid to car dealerships by finance companies. Essentially, dealerships were earning extra money on top of the interest you were paying – and you weren't always told about it. This practice has now been deemed unfair, and the Supreme Court's ruling could trigger widespread compensation claims.

Who's Affected? Anyone who took out a car finance agreement before April 28, 2021 could be eligible. This includes personal loans, hire purchase agreements, and conditional sale agreements. The key date is when the Financial Conduct Authority (FCA) in the UK introduced new rules requiring these commissions to be fully disclosed.

How Much Could You Get? The amount of compensation varies depending on the amount of commission the dealership received and how that impacted the interest rate you paid. Martin Lewis estimates that some people could be owed up to £1,100, but it could be much less, or even nothing, depending on the specific circumstances of the agreement.

Martin Lewis's Advice: Lewis is urging affected individuals to gather their finance agreements and check if they were charged undisclosed commissions. He's also advising people to be wary of claims management companies charging high fees – you can often pursue a claim yourself.

How to Check Your Eligibility:

• Review Your Finance Agreement: Look for any mention of commission payments to the dealership. If it's absent, that's a potential red flag.
• Contact Your Finance Provider: Ask them to provide a breakdown of the commissions paid.
• Seek Independent Advice: If you're unsure, consult with a financial advisor or consumer rights organisation.

Important Considerations:

• Time Limit: There's a time limit for making claims, so don't delay!
• Complexity: Calculating the exact amount of compensation can be complex, so be prepared for some paperwork.

This is a developing story, and Martin Lewis will continue to provide updates. Stay informed and take action if you believe you're entitled to a refund. It’s a potentially significant opportunity for millions of car buyers to reclaim money unfairly taken.

Disclaimer: This information is for general guidance only and does not constitute legal or financial advice. Always seek professional advice before making any decisions.