Martin Lewis tells motorists making car finance claim how to 'get paid first' - Chronicle Live

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Martin Lewis tells motorists making car finance claim how to 'get paid first' - Chronicle Live

Last updated: 5 July 2026

Martin Lewis, the well-known consumer advocate and founder of MoneySavingExpert.com, has recently advised UK motorists facing car finance disputes on how they can efficiently deal with the process to potentially receive compensation without incurring additional costs. This advice comes at a critical time when millions of UK drivers are eligible for redress following an extensive FCA (Financial Conduct Authority) review that identified issues with motor finance agreements.

The FCA's recent investigation has found that 12.1 million car finance agreements, representing £7.5 billion in total redress, may have been mis-sold between April 6, 2007, and November 1, 2024. On average, each eligible agreement could receive around £829 in compensation. This significant financial impact underscores the importance of understanding one’s rights and options when dealing with car finance issues.

What Does This Mean for UK Drivers?

For drivers affected by the FCA motor finance review, Martin Lewis's guidance emphasizes the importance of direct communication with their lenders. According to MoneySavingExpert.com, motorists should "complain to your lender directly for free" if they believe their car finance agreement was mis-sold or otherwise unfairly handled. This approach avoids unnecessary fees associated with claims management companies, which can often be a costly alternative.

The FCA's findings indicate that many drivers were misled about the terms and conditions of their car financing options, particularly in Hire Purchase (HP) agreements and Personal Contract Purchase (PCP) deals. These financial products are complex, and it is essential for consumers to fully understand the implications before committing to them.

How Can You Ensure Your Rights Are Protected?

To ensure that your rights as a consumer are protected, motorists should familiarise themselves with the nature of their car finance agreement. The MLJ.org.uk website offers detailed guides on PCP versus HP financing and explains the differences between these options clearly (visit motor finance for more information). This knowledge is crucial in identifying whether a mis-selling case can be made against your lender.

using tools such as MLJ's Finance Checker (available at finance checker) can help identify any irregularities or potential issues with your car finance agreement. By using these resources, motorists can make informed decisions and act promptly to secure their rights without incurring additional expenses.

What Should Motorists Do Now?

While the FCA's review has confirmed that significant redress is due to affected drivers, it is essential to note that the process for claiming compensation remains lengthy. The timeline for implementing the scheme has not yet been finalised, and motorists should be prepared for a protracted period before receiving any financial benefits.

To start the process of securing your rights, consider these immediate steps:

Review Your Agreement: Carefully examine the terms and conditions of your car finance agreement to identify any discrepancies or issues that align with the FCA's findings.
Direct Communication with Lender: If you believe your agreement was mis-sold, contact your lender directly for a free complaint process as advised by Martin Lewis on MoneySavingExpert.com.
Stay Informed: Keep abreast of updates from MLJ.org.uk and other trusted sources regarding the progress of the compensation scheme.

By following these steps, motorists can deal with the complex situation of car finance claims effectively and potentially secure fair redress without unnecessary costs or delays.

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To sum up, while the FCA's review offers a pathway to significant financial relief for affected drivers, it is imperative to act judiciously. Direct communication with lenders as recommended by consumer advocates like Martin Lewis remains one of the most efficient ways to initiate the process of seeking compensation. This approach not only ensures that you do not need a claims management company but also helps in avoiding any potential pitfalls associated with third-party involvement.

Frequently Asked Questions

How can I make a car finance complaint if I believe my lender is at fault?

If you think your car finance lender has made a mistake or treated you unfairly, you have the right to complain directly to them for free. Most lenders have an internal complaints procedure that you should follow first.

What steps should I take if my car financing agreement is mis-sold?

If you believe your car finance agreement was mis-sold, start by reviewing the terms and conditions of your contract. You can then raise a complaint with your lender, who will investigate and respond within a set timeframe.

Can I seek help from an independent body if my car finance complaint isn't resolved?

If your car finance complaint is not resolved after following the lender's internal procedure, you can escalate it to the Financial Ombudsman Service. They provide a free service for resolving disputes between consumers and financial providers.

Important: MLJ.org.uk is an independent information resource. We are not a claims management company, solicitor, law firm, or financial adviser. We do not process claims, take fees, or provide advice. Where the law gives you a right to complain or claim directly (to a lender, council, FOS, court, or regulator), you can do so without paying a third party. MLJ.org.uk is operated by Copious Ltd, registered in England and Wales, company number 11437826.