Martin Lewis warns those who bought cars between 2007 and 2021 could owe 'billions'

MARTIN Lewis has warned motorists who bought their cars between 2007 and 2021 that they could be owed “billions” in compensation.

The trusted British money expert dropped the bombshell announcement on his podcast earlier this month.

He revealed that drivers may be able to make this claim as a result of an investigation by the Financial Conduct Authority (FCA).

He claimed “millions” who bought a car under a PCP or finance deal could be affected.

He also said car finance payouts could be at PPI levels once the FCA complete their investigation.

The watchdog has since revealed that deals agreed between 2007 and 2021 will be investigated.

This has led financial experts to estimate the total cost of the bill with lenders likely to have to pay much more.

According to the Financial TimesAnalysts at Jefferies believe the total cost to the sector could be around £13 billion.

This is more than previous estimates, which put total payouts closer to £4 billion.

Martin Lewis has promised to provide his followers with more information “within ten days” as he works to find the most accurate information.

He revealed the scale of the program last week when he admitted a 'back of the envelope' calculation would see tens of billions of pounds returned to motorists.

He explained the situation and told the BBC: “What happened at that point was that the lenders who organized the financing said to the car dealers: 'the commission is discretionary'.

“In other words, if you want more commission on these financing products – and that's why they're sold more heavily – you can simply increase the cost of financing and you'll get more commission.

“Many of them did and it went undeclared, so consumers didn't know exactly what huge amounts of commission were being paid to car dealers for this type of financing.”

The FCA decided to investigate the issues after a “large number of complaints” were made to car finance companies about compensation for commission schemes.

Companies have rejected most complaints because they believe they have not acted unfairly or caused harm to their customers.

However, the Financial Ombudsman Service ruled in favor of motorists in two recent cases, which the FCA believes are likely to lead to a “significant increase” in further complaints.

This isn't the only good advice Martin Lewis has shared recently.

Earlier today we told how he warned thousands they could owe up to £40,000 – don't miss the 'rock hard deadline' just days away.

The Money Saving Expert delivered the urgent message during an episode of The Martin Lewis Money Show Live.

He reminded Britons of the looming deadline to claim up to £40,000 in retrospective bereavement support by February 8.

He said: “This is very important money for some people in vulnerable positions. This is urgent.”