Drivers who purchased cars before 2021 may be unaware they are on the verge of compensation payouts, according to a money expert.
TV host Matt Allwright warned motorists may have agreed to pay discretionary commission on car finance products without even realising it.
The money expert predicted that many road users did not fully understand the terms of their finance contract when taking out the vehicle.
Matt’s warning comes just days after Martin Lewis raised awareness of a major FCA investigation into motor finance firms.
The Money Saving Expert warned “millions” could be affected with PPI levels of payouts expected.
Speaking to BBC’s Morning Live, Matt claimed: “The question you need to be asking is did it have a discretionary commission agreement in place. That was the mechanism being used. You should have been informed of that at the point where you were taking out the deal.
“But often there wasn’t a standardised way of letting people know. So it might have been built into the small print or it might not be there at all. You might have been told in person but not really understood what it meant.”
The FCA is looking into “widespread misconduct” across motor finance firms after noticing “a high number of complaints from customers” to providers.
The probe comes after the Financial Ombudsman Service ruled in favour of two complainants in recent decisions.
The FCA warned this could “promote a significant increase in complaints from consumers”.
Matt added: “If you are looking to claim the first person to go back to is the dealer, the person who sold you the car.
“If they are not around then back to the lender, the person who gives you the finance in the first place.
“Say, I need to understand was this discretionary commission agreement in place, if so I’m not happy about it and I need to take action.”
Martin Lewis has also urged motorists who believe they may be affected to still file complaints to their provider.
He warned this would ensure motorists caught out would still “meet any backdated cutoff” later down the line.
Martin added: “On the back of the envelope. I think we are talking about tens of billions of pounds that could be paid back here. This is PPI scale here.”
