Motor Finance Claims and Pay by Bank

Available for over a year

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