Martin Lewis has issued a car finance compensation update (Image: ITV)
has warned more motorists could be set for car finance compensation payouts with some drivers
The founder revealed the had extended complaints until December 2025 with car leasing deals also included.
The finance guru admitted the development would “significantly widens the potential number of complainants” with than previously thought.
Martin stressed that up to 99% of car finance cases may now fall under the FCA investigation’s remit.
Martin updated followers with the major on Thursday morning.
More drivers may now be eligible for car finance compensation (Image: Getty)
He posted: “@TheFCA has formalised the pause on car finance Commission Disclosure complaints until Dec 2025. Crucially it has also said this WILL include car leasing (unlike DCA complaints which doesn’t).
“Commission Disclosure complaints are those based on the Court of Appeal surprise ruling that if car finance agreements didn’t tell consumers all details of commission including the amount (they rarely did) they were unlawful. It applies to up to 99% of car finance cases.
“The fact leasing has been brought into scope significantly widens the potential number of complainants. Yet all this is dependent on the Supreme Court agreeing with the Court of Appeal when it hears the appeal in Spring(ish), and that is far from certain.
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“The pause doesn’t stop people complaining. It just says firms don’t have to make a decision on the complaint while the ruling is awaited.
“This doesn’t impact the separate FCA investigation into car finance Discretionary Commission Arrangements (DCAs) which already has a pause on.”
The FCA confirmed the latest extension comes after a major Court of Appeal ruling back in October.
It found that it was unlawful for car dealers to receive a commission from lenders providing motor finance without first telling the customer about the commission and receiving informed consent.
The FCA stressed firms were in response to the latest judgment.
Martin has previously admitted cars, vans or motorbikes purchased using a PCP or Hire Purchase deal could be mostly affected.
He warned individuals could be due “£1,000s back” but more accurate figures around total payouts road users could receive are still unknown.