Drivers told when they could receive £1,000s in compensation

Experts have revealed when petrol, diesel and electric car finance customers could receive compensation with the Supreme Court decision due imminently. Specialists at Consumer Voice have suggested road users affected by the car finance investigation could be “paid early next year".

Last autumn, the Court of Appeal ruled that it was unlawful for car dealers to receive a commission from a lender unless it was properly disclosed to the customer at the time. In April, the Supreme Court heard the appeal against the Court of Appeal’s decision. The three-day hearing involved submissions from experts, including from the Financial Conduct Authority (FCA) and the National Franchised Dealers Association (NFDA).

A final outcome is due later this summer, with any compensation expected to follow within a matter of months.

Alex Neill, co-founder of consumer rights organisation Consumer Voice, told Express.co.uk: “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.”

The FCA opened its investigation into car finance firms back in January 2024 after concerns of "misconduct" across the sector.

Money Saving Expert founder Martin Lewis has previously warned that anyone who purchased a vehicle under a finance deal between 2007 and 2021 could be affected.

He warned road users may be owed £1,000s in compensation while he compared the scale of the possible payouts to PPI.

Earlier this week, the finance guru was asked about car finance compensation on his popular Martin Lewis Money Show.

However, he also urged road users to hold on, stressing “nothing else happens” until after the Supreme Court ruling has been heard.

The most important thing to understand is car finance claims are currently on hold because the Supreme Court is looking at a case right now, it's already heard evidence on it and we're waiting for a decision, now no-one knows when that will come - we just don't know."

The people in the know are telling me they're hoping it will be July, so I'm going to say July-ish is the probably rough time span".