Motor Finance Claims and Pay by Bank

Money Box

BBC

Business

4.2 • 825 Ratings

🗓️ 21 March 2026

⏱️ 25 minutes

🔗️ Recording | iTunes | RSS

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Summary

Claims management firms have been warned by regulators to treat their customers fairly over compensation claims for mis-sold car finance. The financial regulator is set to announce its own free-to-use scheme for the millions of people who could be due compensation because the car finance deals they signed up to were mis-sold. Private claims management firms, which have already taken on many claims, can take as much as 40% of any compensation eventually paid out. The warning from the regulator includes telling consumers to guard against large charges to pull out of their claim, so-called exit fees, if they wish to switch to the free scheme.

And, if you've been shopping online recently you may have been asked to eschew your usual credit-card payment in favour of a new way to hand over your money: pay by bank. By cutting out the credit or debit card middlemen, you'll be saving the retailer some cost from payment fees. But what's in it for the online shopper - apart from having to put up with weaker consumer protection?

Also, the savings and investment divide between those who are, and aren't, using the tax-free benefits of a junior ISA and the new figures which show how online scammers are targeting those who are trying to improve their personal finances.

Photo credit: Tim Goode/PA Wire

Transcript

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0:00.0	BBC Sounds, Music, Radio, Podcasts.
0:07.0	An early start here. It's time to kick off.
0:10.0	Your day. Morning!
0:11.9	What a line-up.
0:13.3	Oh, thanks very much. We do get some great guests on the show.
0:16.1	The crowd is loving this.
0:18.3	Thanks, guys. Thank you. Too kind.
0:20.2	From morning chaos to match day commentary. And everything in
0:24.4	between. BBC sounds packed with personality. Hello, welcome to this Moneybox podcast. Junior
0:32.3	Isis are a popular way to save for children. Some parents max them out, but far more pay in nothing.
0:39.6	The financial ombudsman warns that thieves are waiting to pounce on people who go online
0:43.9	to improve their finances. And who gains and who loses when online retailers suggest you
0:49.7	pay by bank rather than by card? I think you know the answer. But first, claims management firms
0:56.9	have been warned by two regulators to treat their customers fairly over compensation claims for
1:03.0	missold car finance. This recent joint statement is from the Financial Conduct Authority and the
1:09.0	Solicitor's Regulation Authority,
1:16.1	and it comes about a month before the FCA is expected to announce its own claim scheme,
1:19.9	which will be free to use, unlike claims management firms,
1:23.5	which can charge more than a third of any compensation paid.
1:27.4	Dan Whitworth's been investigating, Dan, remind us how this came about.
1:32.6	Well, last summer, the UK Supreme Court issued a long-awaited ruling on this.
1:38.3	And following that, the FCA said payouts could result from around 14 million car finance deals taken out between April 2007 and November 2024.
	...

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