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Major update on date drivers could be handed £1,000s in car finance scandalThe Supreme Court is set to make a decision on the car finance scandal in July, Martin Lewis has explained, with

drivers potentially owed thousands in compensationCommentsChristian Abbott Audience Writer and Luke Chillingsworth09:07, 28 May 2025Martin Lewis has issued an update on the car finance

scandal(Image: undefined via Getty Images) Drivers embroiled in the car finance scandal have been informed about when they might receive thousands in compensation. It comes due to financial

providers being accused of inflating interest rates on motor finance through discretionary commission arrangements (DCAs).

Alex Neill, co-founder of Consumer Voice, remarked to Express: "The Supreme Court is the highest court in the land, so whatever it decides goes. The judgment will bring well-needed certainty

to consumers and the market and it's good to see the judges acknowledging the need for swift justice."

‌ "The court has signalled it hopes to hand down a verdict in July and the financial regulator will respond within six weeks. So, consumers should expect compensation could be paid early

next year."

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MoneySavingExpert Martin Lewis mentioned in his recent update: "The people in the know are telling me the decision will be in July.", reports Birmingham Live. This scenario follows

revelations that car dealers, operating as brokers, were reaping commissions linked to the interest rate customers were charged for Personal Contract Purchase (PCP) and Hire Purchase

agreements.

Article continues below Further, he points out: "The regulator (The FCA) has put out a statement saying it will consult on 'an industry-wide redress scheme'. Now, 'consult' is mostly

technical, this really means it's made up its mind. It plans a Section 404 redress scheme that will require lenders to proactively contact all borrowers who met the mis-selling criteria, and

offer them a fixed redress based on FCA rules.

"Therefore, people won't need to complain, they will be paid out an amount dictated by the FCA to firms based on the consumer's situation."

Even while the FCA consults on a redress scheme, you could still log a complaint now to help companies find your information (particularly if you've moved or changed contact details).

There's no need to use a claims management firm to complain – it'd take a cut of any money you're due."