Millions of car finance customers in the Philippines could be entitled to compensation after widespread mis-selling practices were uncovered. Consumer champion Martin Lewis is stepping in to guide Filipinos through the claims process, as the Financial Conduct Authority (FCA) predicts payouts could reach up to £950 per person. Here's everything you need to know to potentially reclaim what you're owed.

What's Happened? The Car Finance Mis-selling Scandal

Back in the UK, a significant issue arose regarding how car finance was sold. Many lenders failed to properly disclose commission payments made to dealerships based on the interest rate customers paid. This meant customers were often pushed towards higher interest rates than they needed to pay, effectively increasing the cost of their car finance without their full knowledge. The FCA has acknowledged this widespread mis-selling and has set up a compensation scheme to address it.

Is Your Car Finance Affected?

If you took out a car finance agreement between April 2008 and December 2020, you might be eligible for compensation. It doesn't matter if you've already paid off the loan – you could still be entitled to a refund. The key is whether you paid more interest than you would have if the commission structure had been transparent.

Martin Lewis's Step-by-Step Guide to Claiming

Martin Lewis has provided a clear and concise guide to help Filipinos navigate the claims process. Here's a breakdown:

1. Check Your Eligibility: Did you take out car finance between April 2008 and December 2020?
2. Gather Your Documents: Collect any paperwork related to your car finance agreement, including the original agreement and any statements.
3. Calculate Potential Compensation: Martin Lewis's website (MoneySavingExpert.com) offers free calculators to help you estimate how much you might be owed. While these are UK-based, they can provide a general idea.
4. Contact Your Lender: Submit a formal complaint to your car finance provider. Clearly state that you believe you were mis-sold car finance and outline the basis of your claim.
5. Use a Claims Management Company (Optional): While you can pursue a claim yourself, many companies offer assistance for a fee. Be sure to research any claims management company thoroughly before signing up.
6. FOS Mediation: If your lender rejects your complaint, you can escalate the matter to the Financial Ombudsman Service (FOS) for mediation.

Important Considerations for Filipinos

While the FCA's scheme is primarily for UK residents, the principles of mis-selling apply globally. If you believe you were misled into taking out a car finance agreement with an unfair interest rate due to undisclosed commissions or other deceptive practices, you should still pursue a claim with your lender in the Philippines. Consulting with a legal professional familiar with consumer rights in the Philippines is highly recommended.

Don't Miss Out – Time is of the Essence!

The FCA has set a deadline for claims, so act quickly to avoid missing out on potential compensation. Martin Lewis urges everyone who believes they may have been affected to investigate their options now. With payouts potentially reaching up to £950, it's worth taking the time to check your eligibility and submit a claim.