Martin Lewis Confirms 'You'll Be Told' As Millions Set To Receive £700 Payment

If you’ve ever taken out car finance, there’s a good chance you’ve seen headlines about possible compensation - well now, there’s finally an update.

According to money-saving expert Martin Lewis, millions of people could soon find out exactly how much they’re owed.

After months of uncertainty around the car finance mis-selling scandal, progress is being made on a compensation process that could see affected drivers receiving payments averaging around £700. While that amount will vary depending on individual cases, the key takeaway is that people who have already submitted claims should soon start hearing more details about what they might receive.

Here’s what’s going on, and what it could mean for you.

What’s the car finance compensation about?

The issue centres around something called discretionary commission arrangements (DCAs). In simple terms, some lenders allowed car dealers and brokers to increase the interest rate on finance deals in order to earn higher commission.

The higher the interest rate they convinced you to accept, the more money they made.

The problem? Many customers were never told this was happening. In some cases, people may have been paying significantly more for their car finance without realising the rate had been influenced by commission.

Because of this, regulators began investigating whether millions of customers were treated unfairly — opening the door for potential compensation.

When people will find out their compensation

According to Martin Lewis, there is now a clearer process for what happens next.

If you’ve already submitted a claim, the companies handling the complaints will calculate what compensation you may be owed. Once that’s been worked out, you’ll be contacted directly with the amount they believe you should receive.

The average payment being discussed is around £700, though some people could receive more or less depending on the details of their original finance agreement.

When you receive the offer, you’ll typically have two options:

• Accept the compensation and receive the payment

• Challenge the amount if you believe it’s too low

That means you won’t necessarily have to take the first figure offered if you think it doesn’t reflect the true cost of the finance deal.

Who might be affected?

This issue mainly affects people who took out car finance agreements before 2021, when the practice of discretionary commission was banned in the UK.

If you used finance to buy a car — particularly through a dealership — during that time, there’s a possibility your agreement included these commission arrangements.

However, not every deal will qualify for compensation, which is why lenders need to assess individual cases.

What happens if you haven’t made a claim?

If you haven’t submitted a complaint yet, there may still be time depending on how the situation develops. Many claims have been filed already, but regulators and financial institutions are still working through the scale of the issue.

For now, the key thing is that the process is moving forward — and those who have already raised complaints should soon start receiving updates about potential payouts.

Why this matters

Car finance is one of the most common ways people buy vehicles in the UK. Millions of drivers rely on personal contract purchase (PCP) or hire purchase agreements to spread the cost of a car.

That’s why this investigation has attracted so much attention. If lenders allowed hidden commission structures to influence interest rates, it could mean a huge number of customers paid more than they should have.

The potential compensation might not be life-changing money, but an average payout of around £700 could still make a meaningful difference - especially during a time when many people are feeling the pressure of rising living costs.

The bottom line

If you’ve already submitted a complaint about car finance mis-selling, keep an eye out for updates. Companies should soon start informing claimants about the compensation they’re eligible to receive, along with the option to accept or challenge the offer.

For now, it’s a waiting game, but after months of uncertainty, there’s finally some movement.

And if you do end up receiving a payout, that’s a pretty decent bonus for simply checking whether your car finance deal was fair.