Martin Lewis says motorists who were mis-sold car finance are likely to receive “hundreds, not thousands of pounds” – with regulators launching a consultation on a new compensation scheme.

The founder of MoneySavingExpert.com believes it is “very likely” that about 40% of Britons who entered personal contact purchase or hire purchase agreements between 2007 and 2021 will be eligible for payouts.

“Discretionary commission arrangements” saw brokers and dealers charge higher levels of interest so they could receive more commission, without telling consumers.

Speaking to Sky News Radio’s Faye Rowlands, Lewis said: “Very rarely will it be thousands of pounds unless you have more than one car finance deal.

“So up to about a maximum of £950 per car finance deal where you are due compensation.”

Lewis explained that consumers who believe they may have been affected should check whether they had a discretionary commission arrangement by writing to their car finance company.

However, the personal finance guru warned against using a claims firm.

“They’re hardly going to do anything for you and you might get the money paid to you automatically anyway, in which case you’re giving them 30% for nothing,” he added.

Read more: How to tell if you’ve been mis-sold car finance

Yesterday, the Financial Conduct Authority said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

The FCA’s statement added that those affected “should be appropriately compensated in an orderly, consistent and efficient way”.

Lewis told Sky News that the consultation will launch in October – and will take six weeks.

“We expect payouts to come in 2026, assuming this will happen and it’s very likely to happen,” he said.

“As for exactly how will work, it hasn’t decided yet. Firms will have to contact people, although there is an issue about them having destroyed some of the data for older claims.”

He believes claims will either be paid automatically – or affected consumers will need to opt in and apply to get compensation back.

Read more from Sky News:
Hamas ‘ready’ to deliver aid to hostages
Oasis ‘saddened’ after man dies at concert

The FCA estimates the cost of any scheme – including compensation and administrative costs – to be no lower than £9bn.

But in a video on X, Lewis said that millions of people are likely to be due a share of up to £18bn.

The regulator’s announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

Almost two months after Air India Flight 171’s deadly crash, some of the 53 British nationals on board are only now being laid to rest.

Some 300 friends, families, and locals from the Gujarati community in and around London gathered in Wembley for a prayer and memorial service dedicated to remembering some of the victims.

Wearing his father’s emerald ring that was miraculously recovered from the wreckage, Miten Patel addresses the crowd.

His parents, Ashok and Shobhana Patel, were travelling back to their home in Orpington, Kent, after a spiritual trip to India, when they were killed in the crash on 12 June.

Their funeral was held only days ago, after being delayed following the discovery that the remains of other individuals were found in Miten’s mother’s casket.

He credits Professor Fiona Wilcox, the senior coroner at Inner West London Coroner’s Court, for meeting with him and his family to break the news.

“My parents were the first ones repatriated in the UK,” Miten explains – he organised the repatriation of his parents before he flew out to Ahmedabad.

“When they were back home, the first thing that they did was a CT scan. And that’s when it came about, the CT scan showed that with mum’s remains, there were further remains there too.

“I don’t know what they were. I don’t know how many.”

Miten’s parents’ funeral was attended by hundreds. His father, Ashok, was a financial adviser and his mother, Shobhana, was a retired microbiologist.

As the eldest son, organising much of his parents’ farewell fell to him. The concern around his mother’s remains delayed the family’s chance to grieve.

“I think there should be a level of responsibility taken. Why did that happen? Where was the flaw in that process? I mean I do understand that whole situation, people were rushing, people were very tired.

“You know, to get all the remains, then having to separate them by DNA, it’s a long process. But really, for us as loved ones, it is very upsetting.”

Indian government spokesman Randhir Jaiswal previously said the country was “working closely with the UK side from the moment these concerns and issues were brought to our attention”.

“In the wake of the tragic crash, the concerned authorities had carried out identification of victims as per established protocols and technical requirements,” he said. “All mortal remains were handled with utmost professionalism and with due regard for the dignity of the deceased.

“We are continuing to work with the UK authorities on addressing any concerns related to this issue.”

The flight crashed moments after take-off en route to Gatwick, killing 241 people on board. Horrifying images were beamed around the world within minutes.

Confusion and fear spread like wildfire among relatives back in the UK, who immediately tried to get hold of their loved ones.

Read more:
Plane suffered ‘no mechanical fault’ before crash – chief executive
Anger growing as Air India families wait for relatives’ remains

It was a family member of Komal Patel’s who called her after seeing the images on the news.

There was only one flight out of Ahmedabad back to London that day, and she had only just been texting her brother Sunny and his wife Monali, who’d been on holiday.

The events of the past few weeks have been unfathomable.

In her first interview about her brother and her sister-in-law, Komal explains how she flew out to India with her cousin Jina to go and identify her little brother.

“Because we weren’t really allowed to see the body, I don’t think I’ve really come to terms with it. I still think I’m dreaming and it’s not really real,” Komal tells us.

Sunny and Monali Patel were in their 30s and about to celebrate their 10-year anniversary.

The couple were the “light” and “soul” of their families.

They loved having fun, playing with their nieces and nephews and adored travelling. Komal says her brother loved barbecues and her sister-in-law worked with children and adored hers too.

“They’re just really fun, exciting, really lived life, just made memories, just made everyone really happy,” says big sister Komal.

“They were like the heart of my kids. Whenever they walked into a room, they just filled up the room with laughter and happiness.”

The couple had been due to fly back home to London a week beforehand but postponed their flight.

“It has just been very traumatic, very, very sad for us, losing Sunny and Monali at 39 years old,” says their cousin Jina.

“They were full of life and brought so much light into our family. As a family, we’re devastated at why two people so young, with so much energy, who brought so much into our families have just sort of gone in one day.”

Read more from Ashna Hurynag:
Attacker told man stabbed in sword rampage: ‘I’m going to kill you’
Daughter’s ‘painful’ last memory of mum stabbed at carnival

A joint funeral for the husband and wife was held a fortnight ago and like hundreds of families impacted by this tragedy, the family are now rebuilding a foundation that has been shattered.

Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.

In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.

Read more: How to tell if you’ve been mis-sold car finance

The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.

It estimates most individuals will probably receive less than £950 in compensation.

The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.

The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

The court overturned a ruling that would have meant millions of motorists could have been due compensation for over “secret” commission payments made to car dealers as part of finance arrangements.

The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.

Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.

Read more:
Storm Floris to hit the UK with 90mph winds
Teenagers arrested over murder of 19-year-old

In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.

This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.

While it’s unclear exactly how many motorists could be eligible for any compensation, it was previously estimated that about 40% of car finance deals included DCAs.