Consumer champion Martin Lewis has issued a critical alert to UK motorists about seemingly 'free' car finance mis-selling checks being widely advertised online.
The Hidden Cost of 'Free' Checks
The MoneySavingExpert.com founder revealed these offers are 'sprayed across the internet and social media' but often conceal significant drawbacks. While appearing straightforward to complete, Lewis urges consumers to 'beware' before proceeding.
Through his official X (formerly Twitter) account, Martin Lewis explained the concerning mechanism: 'What often happens is you put your details in and there's a tick box for terms and conditions at the bottom. Some of those don't clearly state that by proceeding, you're becoming a client of a claims management firm who could then take 30 per cent of any future pay out you receive.'
How to Claim Without Losing Your Payout
Lewis highlighted a crucial alternative for affected consumers. The Financial Conduct Authority (FCA) is currently proposing a mass redress scheme where some claimants will receive payments automatically without taking any action.
For others, the process remains simple. 'Most people can just submit a claim with a simple letter,' Lewis confirmed, directing people to a free template available on moneysavingexpert.com that enables anyone to claim without paying third parties.
The finance expert specifically warned: 'You may not be aware those free checks are signing you up. Before ticking the box accepting terms and conditions, verify whether they're actually enrolling you as a customer.'
What to Do If You've Already Signed
For those who've already registered with these services, Lewis provided clear guidance. If you signed within the last 14 days, you remain within the cooling-off period and can cancel immediately without penalty.
Responding to concerns about consumers beyond this window, Lewis advised: 'We're waiting for the FCA on that. You'll likely need to pay an exit fee. It's looking at potentially capping that, we believe, so do nothing yet.'
Viewers seeking further financial guidance can watch The Martin Lewis Money Show, which airs on Tuesdays at 8pm on ITV, for regular consumer advice and money-saving tips.
