Martin Lewis issues urgent advice to 12 million drivers affected by car finance scandal
Martin Lewis has issued urgent advice to the 12 million drivers affected by the car finance scandal.
The monetary expert said the mass compensation scheme was “unprecedented” and urged those affected to lodge complaints as soon as possible.
The Financial Conduct Authority (FCA) has published details of its compensation scheme for millions of people for mis-sold car loans, following a lengthy consultation process.
Nearly 12 million drivers are now queuing for payout following a systematic problem that has seen them mis-sell car finance deals, often due to secret kickback arrangements.
The regulator confirmed they will receive an average payout of £830 each and they should be contacted before the end of 2026.
Mr Lewis explained that if a complaint is made now, you’ll be more likely to get a refund this year. If you don’t complain, the lender may also not have details to contact you, he added.
“The only way to know if you’ve been missold, the only way to know if you have a complaint is to complain. So I’m telling you to file your complaint now so you can find out,” Mr Lewis said in a video sent to X.
Those affected do not necessarily need to complain, but the FCA has confirmed that those who have already made complaints are likely to receive compensation sooner.
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Capital is at risk.
Terms and conditions apply.
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People who thought they might have been affected but were not contacted were given until August 31, 2027 to file a complaint with their companies.
“If you’ve made a complaint and you’re told you have a discretionary commission arrangement, that’s one of the big categories of mis-selling, you’re in the group that’s being complained about,” Mr Lewis said.
“If they have responded to you to acknowledge your complaint but have not yet dealt with it, you are in the group that is being reported to,” he added.
However, if you made a complaint and received a response that you did not have a discretionary commission arrangement, you would not be counted in the “complained group”, he explained. He called on those in this situation to file a new complaint as there are now different categories.
However, Mr Lewis explained that it may be possible to make more money by taking your case to court:
He said: “This lump sum compensation scheme covers more people, it will probably be simpler and easier. But if you go to court you are likely to get more money. The problem is, if you go to court you will probably need help to do that, in which case you will donate 30 per cent of what you win. So you need to make that decision.”
