FREE NEWSLETTER
Go to main Forum page »
Here in the UK, there’s an ongoing, large-scale auto loan scandal involving discretionary commission arrangements—where car dealers secretly earned higher commissions by steering customers into more expensive loans. A recent court ruling has ordered loan providers to potentially compensate millions of people who took out car finance over the last 18 years. The news has barely hit the headlines, but the vultures are already circling.
So far, I’ve had unsolicited emails from three different claims handling businesses. All of them claim they have already “found details of a few loans” for which I am due compensation.
All very nice, you might think. A nice little windfall coming my way!
That is, until you consider the fact I’ve never had an auto loan agreement in the past thirty years. My personal experience instantly confirms that these are not legitimate, verified offers. This is a classic example of opportunistic phishing driven by a major news event.
The lure of unexpected “free cash” is designed to make people drop their common sense and caution. I suspect that if you clicked into those emails, you would eventually be presented with a complex form demanding all of your sensitive personal details—the true target of the fraud.
These companies are cold-emailing massive lists, hoping to hook anyone who might have been affected, and they’re lying about having my data to sound more convincing. They are trying to charge people a huge fee (often 20%–40%) for a claim process that the official regulator will eventually handle for free.
I’m sure some will fall victim, letting the prospect of a payout override the simple common-sense check: Did I actually take out one of these loans?
Although this particular compensation scheme is UK-specific, the lesson is universal and applies to any major financial scandal, bank refund, or government payout. Americans have seen identical tactics following data breaches, tax refund schemes, and COVID relief programs.
Always remember the simple mantra: Do not click links from unknown organisations in unsolicited emails or texts. Instead, go directly to the official website for that organisation and navigate from there.
Stay safe, and remember: If someone is emailing you to offer money you didn’t ask for, it’s almost certainly a scam.
Excellent article and very appropriate for today’s world. Scammers use AI to and try endlessly to snag us. Always be aware and do not click any unknown links. It will lead to many headaches. Always be on the lookout.
The IRS notice referenced in Mr. Perry’s response contains a link to an IRS Identity Protection PIN program where you get a new 6 digit pin every year, typically in January. In order to have your return accepted by the IRS, it must include this PIN. This is an excellent way of protecting yourself from this form of identity theft. My wife and I have used this for the past few years and I believe I first read about it on HD. My accountant tells me that relatively few of her personal tax clients use it, despite encouragement from her frequently. Not sure if it can be used for business returns, perhaps Mr. Perry knows.
Easy to set up and worth considering.
Good advice from across the pond.
The IRS regularly reminds tax preparers to be on guard against such fishing emails. The most recent such notice, IR-2025-88 can be read here. Better yet, go directly to the secure website you are wanting information from.
Thank you Mark