Martin Lewis issues £1,000 warning to anyone who bought a car in specific time period

Motorists of the UK, listen up! Money saving oracle Martin Lewis has spoken, and it could mean you're owed a tidy sum of cash.

Earlier this year, Lewis, 52, confirmed there was an ongoing Financial Conduct Authority (FCA) investigation into how car finance had been sold prior to 2021, which meant that millions of drivers could be owed money.

The investigation concerned any car, motorbike or camper van sold between 2007 and 2021 through a PCP or a finance agreement and aimed to determine whether or not customers had been overcharged in their interest.

What is the FCA investigation into car finance deals?

Back in 2021 it was confirmed the FCA were investigating whether or not customers who had taken out a car loan deal within this 14 year period had been subject to unfair rises in interest rates - a practice known as discretionary commission agreements (DCA) - without their knowledge.

It's believed that around 40 percent of finance deals sold during this time period included DCAs.

DCAs were ultimately banned in 2021, with the FCA set to make a ruling on how to compensate drivers affected by spring 2025.

Could you be entitled to compensation? (ITV)

What are the latest updates?

At the end of last month, Lewis shed light on a 'landmark' Court of Appeals ruling in his Money Saving Expert newsletter, which saw the outcome 'favouring consumers over finance firms'.

"The verdict was unambiguous and said a car sales firm couldn't lawfully receive commission from a finance firm unless it had the customer's 'fully informed consent'," he added.

"And to have this 'fully informed consent' the consumer would need to be told all material facts, including the calculations and amount of commission."

Lewis also believes this ruling will support the ongoing FCA investigation.

Lewis is urging anyone who believes they were impacted to use a free checker available on MSE (Getty Stock Images)

How do you make a claim?

Anyone who purchased a car, motorbike or camper van between April 2007 and January 2021 on a PCP agreement could be eligible to make a claim. However this doesn't include static caravans and business cars.

Lewis urged anyone who believes they were impacted to use their online tool - available here - to make a formal request to your insurance provider.

If it comes back that you are eligible for compensation then an automatic formal complaint will be logged.

Lewis also revealed that you can make a claim on behalf of someone who has since passed away or for a vehicle which you no longer own.

The MSE guidance also encourages anyone who believes they may be impacted to make a claim sooner rather than later, in order to avoid being 'timed out'.