Martin Lewis claims that motorists who were poorly sold, the financing of cars are likely to receive “hundreds, not thousands of books” – with regulators launching a consultation on a new remuneration system.
The founder of MoneysAvongexpert.com believes that it is “very likely” that around 40% of British who concluded agreements to buy or buy personal contacts between 2007 and 2021 will be eligible for payments.
The “discretionary committee agreements” saw brokers and dealers invoice higher levels of interest so that they can receive more commission, without saying consumers.
Photos: PA
Addressing Faye Rowlands of Sky News Radio, Lewis said: “It will very rarely be thousands of pounds unless you have more than one automobile financing agreement.
“So, up to about a maximum of £ 950 per automotive financing agreement where you have to compensate.”
Lewis explained that consumers who believe they have been affected should check if they had a discretionary committee agreement by writing to their automotive financing business.
However, the personal finance guru warned against the use of a complaint company.
“They will hardly do anything for you and you could automatically pay the money, in which case you give them 30% for nothing,” he added.
Find out more: How to know if you have been going to sold cars’ financing badly
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Who is eligible for payment after the finance scandal on cars?
Yesterday, The Financial Conduct Authority said Its examination of the previous use of automotive financing “has shown that many companies do not comply with the law or our dissemination rules which were in force when they sold loans to consumers”.
The FCA declaration added that affected persons “should be properly compensated in an orderly, consistent and effective manner”.
Lewis told Sky News that the consultation will be launched in October – and would take six weeks.
“We expect payments to come in 2026, assuming that it will happen and this is very likely to happen,” he said.
“As for exactly how it will work, it has not yet decided.
He believes that complaints will either be paid automatically – or assigned consumers will have to oppose and apply to recover the compensation.
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The FCA estimates the cost of any regime – including remuneration and administrative costs – is not less than 9 billion pounds sterling.
But in a video on X, Lewis said that millions of people should be due to a share up to 18 billion pounds sterling.
The regulator’s announcement comes after The Supreme Court ruled On a separate, but similar case on Friday.