Millions of drivers due share of £56m after legal battle – how to claim

Millions of motorists have been urged to claim payouts they are entitled to after a legal battle found systemic overcharging had taken place over a near-decade-long period.

Around £56m is owed in compensation over the issue, which saw drivers who bought cars from abroad paying too much on the shipping costs of their vehicle.

This applies to new cars, vans and other vehicles purchased from overseas between October 2006 and September 2015. Those who have since sold or leased the vehicle may still be eligible to claim.

Payouts start at £25 per vehicle, decreasing to £5 for each of the next two to six, and £2.50 for vehicles thereafter.

These values could increase if fewer people than expected make a claim, which a later hearing could decide.

If all payments were made at £25, there would be 2.2 million available. The lower values will likely increase this amount.

How to make a claim

The website to register interest in compensation is now live at cardeliverycharges.com. The window to claim will be open for six months, but those interested are advised to apply early, as payouts will be issued on a first-come, first-served basis.

Those who believe they are affected don’t need to provide supporting documentation if they are claiming for six vehicles or fewer. They must just specify the brand of the vehicle and sign a “statement of truth” confirming that they owned it.

Invest at least £100 in Stocks or ETFs of your choice. Get fractional shares worth £50!

Terms and conditions apply.

Go to website

ADVERTISEMENT

Invest at least £100 in Stocks or ETFs of your choice. Get fractional shares worth £50!

Terms and conditions apply.

Go to website

ADVERTISEMENT

The compensation will be paid on a rolling basis, meaning waiting times should be no longer than a few weeks, and a claim can be made on behalf of someone who has died.

The case began in 2018, when the European Commission found five vehicle shipping companies were operating a “cartel” during the affected period.

Mark McLaren, who brought the class claim and runs the Car Delivery Charges campaign, explained: “During the cartel period, the shipping companies shared confidential information, rigged tenders and prices, and reduced overall capacity on the car and van shipping market.

“We believe that the cartel meant that car manufacturers paid too much to transport new vehicles from their factories around the world to the UK and Europe.”

Mr McLaren and law firm Scott+Scott brought the case to the Competition Appeal Tribunal (CAT) in 2020, with the judicial body approving the compensation scheme in September.

It comes after the Financial Conduct Authority (FCA) ruled more than 12 million drivers were owed a share of £7.5bn earlier this year, after the widespread mis-selling of car finance deals.