It comes after the Financial Conduct Authority launched a major investigation into unfair car finance commissions. The FCA previously said it would take a "closer look at historical discretionary commission arrangements" following an influx of customer complaints.
Martin has previously highlighted that if industry-wide wrongdoing is found as a result of the investigation, it is likely that customers will receive some form of compensation. The consumer champion has also said the likelihood of that happening could be going up.Writing for his website Money Saving Expert, Martin highlighted that there are two updates which makes him confident there will be a big payout for those affected.
His second indicator is that the FCA boss commented last week that it is improbable the investigation will not find anything.“Lloyds, which owns Black Horse, has already put a £450m 'provision' towards potential costs & payouts for this. A strong indication that it thinks it, and by inference others, will probably need to pay back money due to DCA mis-selling.
“The boss of regulator the Financial Conduct Authority last week said it's improbable its investigation will find no evidence of wrongdoing. We won't know until it reports in September, but it is another strong indicator.” In a speech, Nikhil Rathi, chief executive of the FCA said: "While certainty is not something I can provide today, and I cannot prejudge what we might find, I can say in my view it is improbable we will find nothing to report as we look at historic motor finance sales.The FCA has put a pause on a deadline for motor finance firms to provide a final response to relevant customer complaints.