Martin Lewis says millions of drivers now 'more likely' to be handed free £1,100

Martin Lewis says car finance customers are now "more likely" to secure £1,100 payout. The BBC Sounds and ITV star has spoken out over a major car finance ruling, which has paved the way for motorists to land a £1,100 compensation payment.

A recent Court of Appeal ruling decided it was “unlawful” for brokers to “receive a commission from the lender providing motor finance without obtaining the customer’s informed consent to the payment.” The ruling found that “consumers need to know all material facts including the amount of commission'”.

Mr Lewis said: “People should be checking if they have a DCA. What this ruling from the Court of Appeal and the FCA means for me is it is more likely if you had a DCA you will be paid out." He told his BBC Sounds podcast: “But it is also more likely it will take longer for you to be paid out as everything will be delayed.

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“Then we get on the question of should you be putting in a complaint if you didn't have a DCA you just had commission, or if you put in a DCA complaint and they said you don't have a DCA. Well, the regulator seems to be indicating yes but the consultation period is two weeks and then it will be another two weeks to put it in place.”

The scandal involves motorists, road users and drivers who bought a car, van, camper van or motorbike using Personal Contract Purchase or Higher Purchase deals (not leasing) for primarily personal use between April 2007 and 28 January 2021. Lenders said brokers and car dealers were allowed to hike interest rates to earn a bigger commission.

In January 2021, the FCA banned the practice, and in January 2024, it launched a huge mis-selling investigation. Mr Lewis believes it is unlikely the FCA would've launched such a huge public investigation unless it had strong evidence of systemic mis-selling.