Of the 14 million drivers due £700 in car finance repayments, around 3.7 million of them could miss out on the maximum amount due to claims management and law firms.

The massive payout scheme relates to a car finance mis-selling scandal spanning almost two decades.

Now around 14 million people who bought cars on finance between April 2007 and November 2024 could get cash.

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It could include any registration plate from 07 up to 74, meaning motorists who bought cars on finance during this period have been urged to check if they could be owed money.

However, many drivers fighting their cases could lose out on the full amount of money they are owed.

According to Consumer Voice, around 7.7 million claims for 3.7 million customers are being handled by such firms.

Examples include, Courmacs Legal, Bott and Co and My Claim Group, all taking a fixed 36 per cent cut from payouts between £1 and £1,499.

On a £700 compensation payment, that would amount to £252 in fees.

Tim Hogg, director of consumer group Fairer Finance, said: "The FCA expects that many consumers who make a successful claim will be better off by paying the exit fee to leave their agreement with their claims management company or law firm."

Sarah Coles, head of personal finance at investment firm Hargreaves Lansdown, adds: "If you think an exit fee is unfair -- or you weren't told about it early on -- you can challenge this. Start by complaining to the company itself.

"They'll have eight weeks to get back to you and, if you're not satisfied their response is right, you can complain to the Claims Management Ombudsman or the Legal Ombudsman, depending on the type of company you used."

Consumer expert Martin Lewis issued an update: "This is important news for anyone who bought a car on Hire Purchase (HP) or Personal Contract Purchase (PCP) finance between April 2007 and November 2024.

"The regulator, the Financial Conduct Authority, has just announced its planned redress scheme, the biggest one we've seen since PPI.

"Of the 32 million car finance agreements in that time, 14 million were likely mis-sold, according to the regulator, and are due a typical payout of £700.

"And what really made me raise my eyebrows is that the way it's going to be paid out is by far the simplest form of redress scheme we've seen, never mind for one of this scale."

He added: "The consultation closes in November. The redress scheme is likely to start in early 2026.

"Now, it's interesting that it's going back to car finance deals from 2007; that one was in the balance."

Drivers risk missing out on £700 car finance repayments due to claims management - Birmingham Live