Drivers could lose 30% of car finance payout as millions of motorists wait for compensation

Drivers have been issued an urgent warning over car finance scams that could target millions of people waiting for compensation from the misselling scandal.The Financial Conduct Authority has warned motorists of misleading car finance adverts that claim to offer money tips.Claims management companies (CMCs) and law firms have been accused of offering advice to consumers who are waiting to hear about compensation from the car finance scandal.Alongside the Solicitors Regulation Authority (SRA), Information Commissioner's Office (ICO) and Advertising Standards Authority (ASA), the FCA has identified a growing number of adverts. TRENDING Stories Videos Your Say They stated that the adverts appear to offer independent advice from an individual, but are actually paid promotions from CMCs and law firms.It added that the advertisements encourage people to sign up for motor finance claims, with some already being banned.Consumers have been warned that adverts may pose as impartial advice from individuals without saying that they are promoting a business.The FCA recently confirmed that it had banned adverts from a CMC which included edited, unauthorised clips of Money Saving Expert, Martin Lewis.Others include the unauthorised use of well-known companies, media outlets and signage, including from the FCA.One firm has already agreed to take down all adverts, with the FCA vowing to take further action to stop consumers from being tricked into signing up for anything.Firms have been reminded of their position to remove content that misleads consumers and prevents them from making informed decisions.They are also expected to take action if consumers were duped into signing up for something they may not be fully informed about.LATEST DEVELOPMENTSIran war forces petrol and diesel drivers to pay £1.7billion more than EV owners as fuel prices soarM25 chaos: Drivers facing two-hour delays and 10 miles of traffic after huge diesel spillMotorhome owners could benefit from overnight parking ban U-turn at popular tourist siteAlison Walters, director of consumer finance at the FCA, said: Accessing compensation is free, and people don't need to use a claims management or law firm to get what they're owed. If they choose to, it should be a genuine and well-informed choice, not one made because of a misleading advert.Over 1,000 misleading adverts have been removed or amended since January 2024 as a result of action from the FCA to crack down on drivers being taken advantage of.An additional 28,000 consumers have been able to exit their contracts for free, while three CMCs have agreed to make changes, including refusing new clients, removing exit fees and updating their advertising fees.The FCA highlighted how signing up to a CMC or law firm could see drivers lose over 30 per cent of any compensation they are set to receive from the redress scheme.It estimates that 12.1 million agreements are eligible for compensation through its redress scheme at a total cost of £9.1billion, with each agreement being worth around £829.The regulator stated that it hopes for the vast majority of compensation to be handed down by the end of 2027, although legal challenges could delay this. Our Standards: The GB News Editorial Charter