Martin Lewis has issued an urgent warning to motorists after the Supreme Court ruled whether millions could be owed compensation over hidden car finance commission payments.
Lenders have avoided potentially having to pay compensation to millions of drivers after the Supreme Court ruled on Friday (1 August) that they are not liable for hidden commission payments in car finance schemes.
Two lenders, FirstRand Bank and Close Brothers, went to the UK’s highest court to challenge a Court of Appeal ruling which found “secret” commission payments paid by buyers to car dealers as part of finance arrangements made before 2021 without the motorist’s fully informed consent were unlawful.
The ruling in October last year found three motorists, who all bought their cars before 2021, should receive compensation after they were not told either clearly enough or at all that the car dealers, acting as credit brokers, would receive a commission from the lenders for introducing business to them.

Lawyers for the lenders told the Supreme Court at a three-day hearing in April the decision was an “egregious error”, while the Financial Conduct Authority intervened in the case and claimed the ruling “goes too far”.
The three drivers, Marcus Johnson, Andrew Wrench and Amy Hopcraft, opposed the challenge.
Giving a summary of the Supreme Court’s ruling on Friday, Lord Reed, one of five justices who heard the case, said: “For the reasons set out in detail in a judgment published today, the Supreme Court allows the appeals brought by the finance companies.”
He continued: “However, we uphold Mr Johnson’s claim that the relationship between him and the finance company was unfair, and we allow the appeal in his case only because the Court of Appeal made a number of mistakes in reaching its decision.
“Retaking the decision on a proper basis, we award him the amount of a commission plus interest.
“The other customers’ claims are rejected.”

Writing on X, Mr Lewis urged drivers not to act yet: “ CAR FINANCE DO NOT DO ANYTHING NOW. DO NOT SIGN UP TO A CLAIMS FIRM. PLEASE SHARE.
“My suspicion is the FCA will within weeks announce consultation on a redress scheme for discretionary commission cases. You may not even have to claim it ,could be automatic. And with excessive commissions I suspect more guidance will come on that at a similar time. If you sign up to a claims firm now, you may have to give it a cut even if it does nothing. So just sit on your hands for now. ”