If you are waiting for a car finance payout, the short answer is that compensation is delayed. On 2 July 2026, the Upper Tribunal suspended parts of the FCA’s motor finance redress scheme while legal challenges are heard. Lenders do not currently have to calculate or pay compensation under the scheme, or send redress offer letters, until the tribunal process concludes.

The challenges are due to be heard on 14 to 18 December 2026 or, if needed, 16 to 26 February 2027. If the scheme is upheld and not appealed, the FCA expects payments to begin in 2027. If it is changed, overturned or challenged further, compensation could take longer.

Your right to complain has not disappeared. If you think your agreement was unfair, you can still start mis-sold car finance claims now, and getting your complaint on record still matters.

What actually got paused

The FCA scheme covers eligible motor finance agreements taken out between 6 April 2007 and 1 November 2024, where commission was payable by the lender to the broker, usually the motor dealer, and the customer was not properly told about certain arrangements.

The unfair features include discretionary commission arrangements, high commission arrangements, and some tied arrangements. The FCA estimates that 12.1 million agreements are eligible for compensation. It expects around £7.5 billion in redress to be paid if the scheme proceeds, with an average payout of about £830 per agreement, although what a payout might actually look like will vary from case to case.

The legal challenge involves Consumer Voice, Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance. The FCA's statement on the suspension confirms that firms do not have to calculate or pay redress for now. However, they must still continue important preparation work, including identifying relevant complaints and agreements, gathering commission and disclosure data, and cooperating with the Financial Ombudsman Service.

In other words, the scheme has not been cancelled. The payout timetable has been pushed back while the tribunal considers the legal challenges.

Should you still complain now?

Yes, if you think your agreement may have been mis-sold. Complaining now does not make a payout arrive immediately, but it does make sure your case is on record. That matters because lenders will not necessarily contact everyone who ever had car finance. They will contact people they identify from their own records, and old agreements can be harder to trace.

If you moved house, changed your name, lost paperwork, used more than one dealer, or had several finance agreements over the years, waiting for a letter could mean being missed. Starting your complaint now reduces that risk.

It costs nothing to complain directly to your lender. Our guide on how PCP and HP mis-selling works explains the common issues, from undisclosed commission to weak affordability checks. It is not only PCP agreements that can be relevant, as hire purchase mis-selling can also qualify where the facts fit. For the numbers, how much compensation you could claim gives a realistic guide.

Common worries that do not block a claim

Several things put people off without good reason. If you have already paid the agreement off, that does not automatically close the door. Our guide to claiming on a settled car finance agreement explains why old agreements may still matter.

If you are worried about your credit score, remember that making a complaint is not the same as missing payments. Complaining and your credit file explains what does and does not change. If your agreement is still active, keep paying unless your lender agrees otherwise.

Lost paperwork is also rarely fatal. Lenders may still hold records, and old bank statements, credit reports or dealer details can help identify the agreement.

Watch out for scams

One side effect of the headlines is a rise in copycat calls, texts and emails. Be cautious if someone asks for an upfront fee, bank details, identity documents or remote access to your device. You do not need to pay a fee to access the FCA scheme, and you can complain to your lender yourself for free. If you have already lost money to a fake claims or refund approach, that may be a separate issue we can help with through scam recovery.

Frequently asked questions

Are car finance payouts delayed?

Yes. Parts of the FCA scheme were suspended on 2 July 2026, so lenders do not currently have to calculate or pay redress until the legal challenge is resolved.

Can I still make a car finance claim?

Yes. The suspension affects the payout timetable, not your ability to complain.

How much is the average car finance payout?

The FCA estimates an average payout of about £830 per eligible agreement, but individual outcomes will vary.

When will car finance compensation be paid?

If the scheme is upheld and not appealed, payments are expected to begin in 2027. If the scheme is changed or overturned, the timetable could move further.

Where this leaves you

The payout timetable has slipped, but preparation still matters. Claim First can check old agreements and handle a car finance complaint on a no win, no fee basis, subject to eligibility and terms. We also help with payday loan refunds and housing disrepair claims. Get your details ready now, and you will be in a stronger position when the scheme starts moving again.