Martin Lewis, the renowned founder of, has highlighted a groundbreaking announcement from the Financial Conduct Authority (FCA) that has seemingly gone unnoticed. This revelation has the potential to result in substantial payouts for individuals who acquired a car or van through motor finance before 2021.

In a recent tweet, Lewis emphasized the magnitude of this development, drawing parallels to the scale of Payment Protection Insurance (PPI) claims, which amounted to £40 billion. The FCA’s move is in response to emerging evidence from two significant ombudsman cases, indicating that companies may be wrongly rejecting complaints related to commissions in pre-2021 motor finance transactions. Consequently, the FCA is undertaking a comprehensive review of complaint handling procedures.

Lewis speculates that upon completion of the investigation, the FCA may establish either a redress scheme, requiring all firms to compensate affected customers, or redress rules that dictate payouts based on a predefined formula for those who file complaints. Potential compensations could encompass interest on loans, commission amounts, or even the entire loan, potentially resulting in thousands of pounds returned to many individuals.

The significance of promptly filing complaints becomes evident, especially if the FCA opts for a redress scheme with a potential cutoff date. While the freeze on complaint handling is currently in place, Lewis suggests that initiating a complaint now can serve as a marker for individuals who believe they have been mis-sold motor finance.

Your Motor Finance Payout Questions Answered: Insights from Martin Lewis

Martin Lewis has provided preliminary information to keep individuals informed about the ongoing situation. His team is diligently working on an in-depth guide to answer all questions related to motor finance compensation. This guide will be available in a few weeks.

Q: What complaints will the investigation cover?

A: The FCA’s investigation will focus on complaints where individuals purchased a car using car finance before 28 January 2021, with the finance being a personal contract purchase (PCP) or a hire purchase (HP) agreement featuring a ‘discretionary commission arrangement.’

Q: Which claims won’t the investigation cover?

A: The investigation will not cover complaints related to car finance transactions made on or after 28 January 2021, car leasing agreements, or claims unrelated to commission.

Q: How much could I get if a redress scheme goes ahead?

A: The FCA has not disclosed specific compensation amounts yet, emphasizing an orderly and efficient settlement process for those owed compensation.

Q: Should I file a complaint now or wait if I think I’m affected?

A: Lewis advises filing complaints as soon as possible, considering potential cutoffs. However, the FCA has temporarily paused firms from responding to complaints received after 17 November 2023 until 25 September 2024.

Q: What if the firm I want to complain to has gone bust?

A: Complaints can be directed to the administrator or liquidator in case of a firm’s insolvency, with details available on the FCA’s Financial Services Register.

Q: What happens if my complaint hasn’t received a response yet?

A: Complaints received after 17 November 2023 won’t be addressed until after 25 September 2024. Individuals with prior complaints can follow the regular process or escalate to the Financial Ombudsman Service (FOS) if unsatisfied.

Q: Can I resubmit a rejected claim based on the FCA’s investigation?

A: The possibility depends on the stage of the complaints process, with options available for reconsideration at certain stages.

Q: Should I contact Khan Mather now if I think I have a claim?

A: Yes please contact us today and we can collate all the information in readiness to submit a claim on your behalf.