FridayOL

MoneySavingExpert founder Martin Lewis has issued a stark warning to New Zealand drivers potentially eligible for car finance compensation. With payouts expected this summer, Lewis is urging Kiwis to act quickly and be aware of crucial deadlines and potential pitfalls that could see them miss out on what they're owed.

What's the Car Finance Compensation All About?

This compensation stems from a High Court case that found some lenders may have incorrectly calculated interest on Personal Contract Purchase (PCP) agreements. Essentially, if you leased a car under a PCP agreement between April 2008 and April 2020, you might be entitled to a rebate. The Financial Conduct Authority (FCA) in the UK, which has been leading the investigation, estimates that around 1.2 million people could be due compensation, totalling billions of pounds. While this is a UK-based case, it has implications for New Zealand drivers who leased cars from UK-based lenders or those with similar agreements.

Martin Lewis's Warning: Don't Miss the Deadline!

Lewis's primary concern is the looming deadline. Lenders are now contacting eligible customers, and there's a limited window to respond and claim your compensation. Missing this deadline could mean forfeiting your right to redress. He stresses that this isn’t a 'wait and see' situation; proactive action is required.

Key Things to Check & Do Now:

• Check Your Records: Gather any documentation related to your PCP agreement, including the original contract and any correspondence from the lender.
• Respond to Lender Communications Promptly: If you've received a letter or email from your lender regarding potential compensation, read it carefully and respond within the specified timeframe. Don't ignore it!
• Understand the Calculation: The compensation amount is based on the difference between what you paid and what you should have paid. If you're unsure about the calculation, seek independent financial advice.
• Beware of Scams: As with any compensation scheme, be wary of unsolicited offers or companies promising guaranteed payouts for a fee. Stick to dealing directly with your lender or a reputable financial advisor.

Who is Eligible?

Generally, eligibility is linked to PCP agreements entered into between April 2008 and April 2020. However, there are nuances. You might be eligible if:

• You returned the car at the end of the agreement.
• You voluntarily terminated the agreement early.
• You still have the car.

Where to Find More Information?

Martin Lewis's MoneySavingExpert website (while UK-focused) provides a wealth of information and guidance on this issue. Additionally, the Commerce Commission in New Zealand can offer advice and support regarding consumer rights and financial agreements.

Don't delay! Take action now to ensure you don't miss out on potential car finance compensation. This is a significant opportunity to reclaim money you may be owed.