Martin Lewis has revealed exactly how many road users could be due compensation as the FCA investigates car finance firms.
The Money Saving Expert claimed as many as 40 percent of motorists who purchased a car before January 28, 021 under a finance deal could be impacted.
This is likely to be millions of road users with mass payouts expected later this year.
Speaking on the Martin Lewis Money Show, he said: “Amongst those people about 40 percent had discretionary commission arrangements, that is the problem here.
“So if you’re saying yes to what I’m going through, it will be 40 percent of you that are probably due to get money back.
“These finance firms let brokers and car dealers make up the internet rates so they could charge more interest so they got bunged more commission.
“They didn’t tell you that, which means you could not negotiate. You didn’t know it wasn’t a fixed interest and you could bring it down. Which means millions of you overpaid crucially without knowing so you will not know if this was you.”
The FCA launched its study into motor finance firms after “a high number of complaints from customers”.
The group are looking into “widespread misconduct” in the motor finance trade with potentially millions affected.
It was started after the Financial Ombudsman Service found in favour of complainants in two recent cases.
FCA chiefs claim this was likely to “prompt a significant increase in complaints” from motorists which led to their involvement.
The FCA has promised it will “identify how best to make sure people who are owed compensation receive an appropriate settlement”.
They stress this will be done in an “orderly, consistent and efficient way”.
Mr Lewis has stressed motorists who purchased vehicles over the last 15 years will likely have a case.
However, motorists who purchased an agreement before 2007 may not be able to get involved.
He added: “I think very likely you can claim if your agreement is before April 2007 which is when the Onbbdusmn took over regulation of car finance.
“I think that’s the very furthest backstop but the honest answer is we don’t know.”
