Martin Lewis reveals exactly how car finance customers could receive £1,000s

shared how motorists when an

founder stressed motorists would likely be paid through a “mass redress scheme.”

This is a system where businesses can settle claims from customers without going to court.

It usually means firms can settle claims from customers quickly and economically, meaning road users will likely receive payouts faster.

However, for the businesses, the scheme can mean an overall reduction in damages and costs.

Although this could be a boost for car finance businesses battling with handling the payouts, it could mean road users secure less.

, Martin said: “That is about the 40% of cases when dealers could increase the charged to customers in order to increase their commission (but here leasing isn’t included).

“That is more likely to see a mass redress scheme, and in my view, if you choose to complain about car finance the start point is there, by asking the firm if you had a DCA.”

Motorists may be owed payouts if they were unfairly charged discretionary commission on a car finance purchase.

Those who secured cars on could be affected by the DCA compensation scheme.

Marin has previously warned road users may be owed thousands of pounds once the probe has concluded.

Earlier this summer, the to DCA complaints.

Although buying firms more time until they have to pay out, the FCA effectively confirmed the delay would give them time to look into the logistics of setting up a redress scheme.

They explained: “The pause allows us time, if necessary, to design, consult on and introduce an alternative way of dealing with DCA complaints, such as a consumer redress scheme.

“It is too early to say if we will intervene in this way, but based on our work so far, it is more likely than when we started our review.

“We consider allowing for this possibility preferable to the uncertainty and greater burden for firms created by a shorter pause that may be subsequently extended.”