Martin Lewis has revealed who could be owed up to £950 for being mis-sold car finance. The financial guru said people are likely to receive “hundreds, not thousands of pounds” in compensation and is urging those who believe they may have been affected to check whether they had a ‘discretionary commission arrangement’ with their finance company.

These arrangements saw dealers charge customers higher levels of interest so they could get more commision. Lewis now believes that around 40% of Brits who got a car on finance between 2007 and 2021 will be eligible for a payout. It comes as regulators launch a consultation on a new compensation scheme.

As reported by Sky News, the founder of Money Saving Expert said: “Very rarely will it be thousands of pounds unless you have more than one car finance deal. So up to about a maximum of £950 per car finance deal where you are due compensation.”

However, he warned against using a claims firm, explaining: “They’re hardly going to do anything for you and you might get the money paid to you automatically anyway, in which case you’re giving them 30% for nothing.”

The Financial Conduct Authority (FCA) said many car firms “were not complying with the law or our disclosure rules that were in force when they sold loans to consumers.” They added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”

Lewis said a six-week consultation will launch in October. He expects all payouts to come in 2026, adding: “As for exactly how will work, it hasn’t decided yet. Firms will have to contact people, although there is an issue about them having destroyed some of the data for older claims.”

While the FCA estimates that the pay outs will total no more than £9bn, Lewis expects people to be due a share of up to £18bn. Lloyds is the most exposed UK bank to the issue and previously set asied £1.2bn to cover compensation costs.

The bank said: “After initial assessment of the Supreme Court judgment, and pending resolution of the outstanding uncertainties, in particular the FCA redress scheme, the Group currently believes that if there is any change to the provision it is unlikely to be material in the context of the Group.

“The provision will continue to be reviewed for any further information that becomes available, with an update provided as and when necessary.”