'I want payout scaled up' - car finance claimant

Andrew Wrench says he feels "disappointed and disillusioned" by the figures being proposed

A man who took car finance companies to court says he wants motorists to receive more compensation from a scheme that could see an average payout of about £700.

The figure is lower than a previous estimate of less than £950 per car deal, as millions of people await redress for car finance mis-selling.

Andrew Wrench – from Trentham, Stoke-on-Trent, was one of three people who took the companies to the Supreme Court over hidden commissions on loans.

He was unsuccessful in his own case, which related to undisclosed payments, but it subsequently helped lead to the issue being discussed further. He said, however: "I'm still quite perturbed and angry at this point."

The payouts are over commission arrangements between lenders and dealers, unfair contracts, and inaccurate information given to car buyers.

The Financial Conduct Authority (FCA) said they could apply to about 14 million loans taken out between April 2007 and November 2024.

Martin Lewis, of the BBC's Martin Lewis Podcast, said £8.2bn was expected to be paid out overall.

"This is absolutely massive," he said. "Of the 32 million people who got a car on a finance deal – PCP and HP specifically – between 2007 and November 2024, 14 million of them are going to be due compensation averaging £700."

'Check statements'

However, Mr Wrench said he felt the level of the compensation was not enough, and he felt "disappointed and disillusioned" by the announcement this week.

"I want them to scale it back up," he added. "They deserve that level of compensation.

"We're not talking tens of thousands, we're not talking about monumental, life-changing amounts of money.

"They've taken those contracts in good faith, they've paid the payments and they... deserve a decent amount of compensation."

Nikhil Rathi, chief executive of the FCA, said lenders would have an obligation to contact affected customers.

People would have one year from the compensation scheme's start date to get in touch with their lender, he said.

He advised people to look at their bank statements and paperwork, but added he hoped the vast majority of people would be contacted by their lender.