Martin Lewis issues warning to 500,000 drivers but urges 'don't panic yet'

In the recent MSE newsletter, Martin wrote: “Last Tuesday, we launched our brand new car finance hidden commission reclaiming guide & tool and… wow! In just seven days you’ve sent over 530,000 complaint emails via it.”

Martin Lewis has explained the “next steps” for 500,000 drivers affected by the car finance scandal. Mr Lewis, the ITV This Morning regular and BBC Sounds podcast host, spoke out on the latest bulletin from Money Saving Expert.

In the recent MSE newsletter, Martin wrote: “Last Tuesday, we launched our brand new car finance hidden commission reclaiming guide & tool and… wow! In just seven days you’ve sent over 530,000 complaint emails via it.”

He went on: “The regulator, the Financial Conduct Authority (FCA), estimates 40% of finance agreements had these dodgy commission arrangements (you won’t know if you did as it was hidden) and the average payout per arrangement may be £1,100.

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“So that potentially equates to up to £234 million coming back to people. The team & I’ve put together a key update below…” He added: “Complained using our tool – what happens next? This is uncharted territory. We’re monitoring how different firms respond.

“We aim to launch a ‘responses survey’ next week, then publish more detailed help once we know more. Yet remember there’s time, you gave the finance firm 28 days to respond.” He explained if you’ve had no reply at all, “don’t panic.”

Mr Lewis said: “So if you haven’t had a reply acknowledging delivery yet, don’t panic, they’re likely just swamped.” f you have been told you had a “discretionary commission arrangement” and your complaint has been logged, then it’s good news as you could be in line with a payout.

If you’re told you didn’t have a “discretionary commission arrangement” then you weren’t overcharged and don’t need to pursue the claim further. The MSE newsletter warned that if you were told you had a “discretionary commission arrangement” but weren’t overcharged, then this is a tactic “designed to put people off”.

If you have been told the firm can’t find your information, then MSE says it may be a little bit trickier. He said: “The FCA says firms should make serious endeavours. Yet in truth it depends how long ago you had your finance agreement.

“We need to do a bit more work on this – we’ll update over the next few weeks.”