Martin Lewis Says Car Finance Could Double In Size As FCA Extends Scope Of Investigation

Martin Lewis has issued a major warning to motorists, suggesting that the ongoing car finance investigation could double in size after the Financial Conduct Authority (FCA) expanded the scope of its review. The FCA is now looking not only at discretionary commission arrangements (DCAs) but all car finance deals involving fixed commissions — a move that could dramatically increase the number of people eligible for compensation.

This shift follows a Court of Appeal ruling that found it unlawful for brokers to receive commissions without customers being fully informed.

FCA Expands Its Car Finance Investigation

The FCA’s latest announcement has sparked significant concern across the industry. While the regulator did not explicitly state that fixed‑commission deals were included, Martin Lewis says he has received confirmation that all commission‑based car finance complaints now fall under the investigation.

This means:

• Anyone who took out car finance between 2007 and 2021 could be affected
• Complaints previously rejected for “not having a DCA” may now be valid
• The number of eligible consumers could more than double

It’s chaos what’s happening and the Supreme Court is all over it leaving lenders relived, can you believe it!

Could This Become “The Next PPI”?

Martin Lewis believes the expansion could push the scandal closer to PPI‑level scale, which resulted in over £38 billion in payouts.

He warns that:

• The FCA is “paving the ground” for a much broader investigation
• Fixed‑commission deals may have lacked proper disclosure
• Millions more motorists could be owed compensation
• The financial impact on lenders could be severe

Lewis described the situation as a “substantial threat” to the motor finance industry.

The MoneySavingExpert Complaint Tool

Earlier this year, MoneySavingExpert launched a free car finance complaint tool, designed to help consumers check whether they were affected by hidden commissions and submit complaints easily.

Following an ITV special on the scandal, the tool was flooded with submissions — highlighting the scale of public concern and the number of potentially affected drivers.

What This Means for Motorists

If you took out car finance between 2007 and 2021, you may now:

• Be eligible to complain
• Be entitled to compensation
• Have grounds to reopen a previously rejected complaint

The FCA is expected to provide further updates in the coming months, and the industry is bracing for a wave of new claims.

Final Thoughts

The expansion of the FCA’s investigation marks a major turning point in the motor finance scandal. By including fixed‑commission arrangements, the number of affected motorists could double — potentially pushing the issue into PPI‑scale territory.

As the FCA continues its review, consumers are being encouraged to stay informed, check their past finance agreements and consider submitting a complaint if they believe they were mis‑sold.

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