Martin Lewis has issued an urgent warning to consumers about car finance reclaiming adverts, which could see millions lose out on vital compensation.
The money saving expert warned that signing up with claims management firms could result in losing 30 per cent of any compensation for nothing.
The alert comes as the Supreme Court's decision on a major car finance mis-selling case is expected imminently, with the judgment potentially due within days.
"You really need to be careful with car finance reclaiming adverts right now, because you may sign up to one and end up giving away 30 per cent of your money and getting absolutely nothing back in return for it," Lewis warned in a video message this week.
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PA/GETTY | Martin Lewis suggested that the Supreme Court may deliver its car finance decision within days
The consumer champion highlighted that the Financial Conduct Authority (FCA) is considering implementing an automatic payout system for one type of car finance mis-selling case.
These adverts are "everywhere", according to Lewis, with messages such as "You could be owed thousands" or "Check your number plate and file your car finance claim today".
The adverts are typically run by claims management firms or law firms attempting to secure no-win-no-fee agreements with potential claimants.
Lewis explained that while these deals "don't sound too bad", consumers need to understand the current timeline of the car finance mis-selling situation.
PA | The Supreme Court is expected to deliver a verdict on the car finance scandal The Supreme Court heard the major case in April, and the decision is expected to be handed down at some point in July, though Lewis noted this timing isn't guaranteed.
"Everything awaits that," he said, referring to how other cases have been put on hold pending this crucial judgment.
The FCA has explicitly stated it is considering an automatic payout system for affected consumers, which would mean firms would be required to contact mis-sold customers directly and provide compensation without any need to claim.
Despite this potential automatic system, anyone who has already signed up to a no-win-no-fee firm would still be obligated to pay them potentially over 30 per cent of their compensation, even though the firm wouldn't have done anything to secure the payout.
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Lewis advised consumers to "sit on your hands" rather than rushing to sign up with claims firms in the coming weeks.
For those who want to establish a claim as a "marker in the sand", he recommended using MoneySavingExpert's free tool that automatically generates an email to help consumers claim independently.
"You can do it yourself," Lewis emphasised, directing people to the free resource rather than paying commission to third parties.
His core message was clear: "The court may end up ruling that you have already been ripped off once. Don't rip yourself off again by pointlessly signing up to a 'no win, no fee' firm in the couple of weeks' run-up before we hear what the Supreme Court is going to say."
PA | Martin Lewis warned drivers to ignore car finance adverts
Lewis revealed on social media that the Supreme Court decision is expected on a Wednesday in July, though he noted "it's not 100 per cent July, if not it's September".
The timing is crucial as claims management firms are currently spending significant amounts on advertising campaigns to recruit customers before the judgment.
Lewis posted on X: "At this crucial time as we await the Supreme Court decision on car finance, beware of the spray of car finance reclaiming adverts."
He urged followers to share his warning, noting it was "hard to get the counter message out" against the widespread advertising by claims firms.