Martin Lewis said many more motorists could be set to receive car finance compensation payouts later this year.
Link copied Bookmark
Martin Lewis has issued a warning to motorists who purchased a car on finance (Image: ITV)
Martin Lewis has said anyone who purchased a car finance deal between 2007 and 2021 could receive compensation within months. The Money Saving Expert founder stressed “masses more people” could be set for payouts once the Financial Conduct Authority’s (FCA) probe into motor finance firms concludes.
The FCA is looking into widespread misconduct among motor finance over concerns customers were unknowingly sold discretionary commission fees. On Tuesday, the FCA confirmed they were looking into a “redress scheme” to ensure consumers were appropriately compensated if they are affected. Martin has previously said road users could be in line for around £1,100 but posted on X yesterday that fees could increase to £1,400.
Drivers could be owed over £1,000 in compensation (Image: Getty)
Speaking on his X account last night, Martin explained: “People aren’t going to have to put complaints in to get money.
“The regulators are going to tell lenders, find everyone who has been mis-sold under the criteria we give you and then pay them out based on a formula that we are going to give you.
“So it’s going to be masses more people, based on whatever the mis-selling is, are going to be paid out.
“It’s going to be proactive instead of people having to complain.”
DON’T MISS
Martin Lewis issues car finance update with more drivers set for £1,400 payout [LATEST]
Martin Lewis issues warning to anyone with car insurance [ANALYSIS]
‘Martin Lewis’s car insurance renewal advice saved me £1,400′ [COMMENT]
The Supreme Court is set to hear an appeal against the Court of Appeal’s judgment on motor finance in early April.
Martin stressed that it could mean road users find out about possible compensation as early as this summer.
The finance guru posted on social media: “The Supreme Court will hear the case in early April, then likely take a few weeks to decide.
“The FCA will then aim to sort out what’s happening on its redress scheme within six weeks. So we should be hearing towards the beginning of June.”
The FCA statement claimed a redress scheme would benefit consumers and ensure road users didn’t have to rely on third-party claims firms.
They explained: “A redress scheme would be simpler for consumers than bringing a complaint.
“We would expect fewer consumers to rely on a claims management company, meaning they would keep all of any compensation they receive.
“It would also be more orderly and efficient for firms than a complaint-led approach, contributing to a well-functioning market in the future.”
