Martin Lewis has issued urgent advice to the 12 million drivers affected by the car finance scandal, urging them to file complaints as soon as possible. The money expert described the mass redress scheme as 'unprecedented' and emphasised that early complainants are more likely to receive payouts this year.
The Financial Conduct Authority (FCA) has confirmed that affected drivers will receive an average payout of £830, with compensation expected to be distributed before the end of 2026. Those who have already complained will likely be prioritised, while others have until 31 August 2027 to lodge a complaint.
Mr Lewis explained that drivers who complained previously and were told they had a discretionary commission arrangement are already in the 'complained group'. However, those who received a response stating they did not have such an arrangement should submit a new complaint, as new categories now apply.
He also noted that taking cases to court could yield higher payouts, but warned that legal assistance typically requires giving up 30% of any winnings. 'This mass redress scheme covers more people and is simpler, but court might pay more,' he said.
The FCA's scheme follows a systemic issue involving hidden commission arrangements in car finance deals. Drivers are advised to check their loan agreements and submit complaints promptly to ensure they are included in the redress process.
