Martin Lewis has issued an urgent warning for consumers who may have been mis-sold car finance, highlighting an upcoming April deadline. The financial expert, speaking on his ITV Money Show Live, urged viewers to act swiftly to secure compensation from a scheme that could see billions of pounds returned to millions of drivers.
The Financial Conduct Authority (FCA) has proposed a mass redress scheme covering car finance agreements made between April 6, 2007, and November 1, 2024. An estimated £8 billion has been set aside to compensate around 14 million agreements, with average payouts of approximately £700 per person.
The FCA's consultation concluded in December 2025, and a pause on handling cases is due to be lifted on May 31, 2026. The watchdog is expected to outline its approach on Monday, March 30, after markets close. Under the proposed timeline, firms will have an initial three-month implementation period, with compensation payments expected by the end of 2026.
Lewis explained that the scandal relates to Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements where consumers were not properly informed about discretionary commission arrangements (DCAs). To be eligible, the agreement must have included a DCA that was not disclosed, or the consumer must have been charged more due to a DCA.
While the redress scheme offers a straightforward route, Lewis noted that consumers could also pursue compensation through the courts, potentially receiving higher awards but facing legal fees. He recommended the FCA's scheme for most people, citing its ease and speed.
