Drivers caught up in the car finance scandal could receive an update in the coming months, according to Martin Lewis, although he cautioned that motorists would need to be patient.
The UK's Supreme Court heard a car finance case at the start of April, with many hoping the outcome will determine whether they will receive compensation.
Financial providers have been accused of using discretionary commission arrangements (DCAs) to increase interest rates on motor finance.
This practice was banned by the Financial Conduct Authority (FCA) in January 2021, but in 2024, it launched a major investigation into whether major firms were still benefitting from these practices.
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Martin Lewis suggested that the Supreme Court may deliver its car finance decision in July
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Firms have been given until December 2025 to respond to motor finance commission complaints.
The FCA states that while the Supreme Court hears the appeal, firms must still comply with the law when arranging new motor finance agreements.
The regulator stated in March that it would no longer plan a further announcement in May, but would rather confirm within six weeks of the Supreme Court's decision if it proposes a redress scheme.
Posting on social media site X, formerly known as Twitter, money saving expert Martin Lewis responded to questions around the car finance scandal.
He said: "I'm being asked this a lot. No update I'm afraid, the Supreme Court case has been heard and everything is now waiting for its decision.
"There is no way to know when that'll happen, but many I speak to have a working assumption it'll be July."
The consumer champion added that motorists would need to be patient and wait for the outcome of the Supreme Court decision, which was delivered at the start of April.
There have been suggestions that the scheme could turn out to be as significant as the PPI scandal.
Data from the FCA states that the average car buyer paid £1,100 more interest on a standard £10,000 four-year motor finance deal when there was a DCA.
Martin Lewis has previously suggested that drivers could receive more than £1,000 in compensation if a redress scheme is given the green light.
A redress scheme would hold firms responsible for determining whether customers have lost out due to the company's failings, meaning they would need to pay compensation.
The FCA states that this would be easier for consumers as they wouldn't need to rely on a claims management company, allowing them to receive more of their compensation.
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Experts suggest that drivers could receive more than £1,000 in compensation for the car finance scandal
GETTYSeveral of the largest motor finance providers have already set aside hundreds of millions of pounds in anticipation of potential payouts to their customers.
