Lewis: Many billions potentially to be paid out
Leading consumer law firm Bott & Co has become the latest to step up its focus on car finance mis-selling cases, unveiling a “strategic collaboration” with claims management company Claimsline.
Claimsline will be offering people support in managing their claims against lenders from start to finish, whilst Bott & Co will help with any litigation that is required.
It comes in the wake of Pogust Goodhead launching myfinanceclaim.com [1] in a bid to pull in clients.
The Financial Conduct Authority (FCA) announced recently that it was assessing the extent of the problem with hidden and unfair car finance commission practices, with millions of people potentially affected.
Earlier this month, consumer website MoneySavingExpert.com launched a car finance hidden commission reclaiming guide [2] and free complaint tool [3], written by the site’s founder Martin Lewis.
A little over 24 hours later, 262,500 people had already sent off their complaint emails from the tool.
People who bought cars, vans or motorbikes on personal contract purchase or hire purchase before 28 January 2021 potentially have claims.
Wilmslow-based Bott & Co said it has been investigating mis-sold motor finance agreements since 2019 and represented the borrower in a test case against Black Horse, which the Financial Ombudsman Service found in her favour in January.
Bott & Co solicitor Coby Benson said: “We’re poised to amplify our efforts in providing comprehensive legal support to those affected by the mis-sold motor finance scandal, and we’re looking forward to leveraging our collective expertise with Claimsline to empower individuals, providing an end-to-end claims service that simplifies the process for those that have been affected.”
Andrew Franks, co-founder of Claimsline, added: “Claimsline has always championed customer advocacy, and our new partnership with Bott & Co is another step forward in this journey.
“The mis-sold motor finance scandal will affect millions across the country, and our value of empowering our customers aligns perfectly with Bott and Co’s vision. Together, we’re making justice accessible.”
Mr Lewis said: “To put it in context, of the 262,500 complaint emails that have been sent via our free tool, it’s estimated 40% of those will have had the hidden discretionary commission arrangements on them.
“The typical overcharge – which is likely to be paid back once the FCA reports in September – is £1,100 per agreement. So that would mean a conservative predicted payout of £115m – conservative as many of the emails cover two, three or four agreements with the same firm.”
He predicted it could end up being second only to PPI in scale, “with many billions potentially to be paid out”.