If you have been waiting for news on a car finance commission complaint, May 2026 is an important point in the process. The FCA’s complaint handling pause ends on 31 May 2026, and the regulator has now confirmed an industry-wide motor finance redress scheme for eligible customers who were treated unfairly between 6 April 2007 and 1 November 2024.

This does not mean every PCP or HP customer will automatically receive money. It does mean millions of agreements are now within a structured compensation process, with clear implementation dates, lender obligations and a final claim deadline for people who have not yet complained.

What was the complaint handling pause?

In January 2024, the FCA paused the usual 8-week deadline for firms to respond to many motor finance commission complaints. The pause was introduced so the regulator could review historic commission arrangements and avoid inconsistent complaint outcomes while legal and regulatory questions were being resolved.

The pause ends on 31 May 2026. However, for complaints that fall within the FCA’s redress scheme, the usual complaint timetable is replaced by the scheme timetable. This means many paused complaints will now be handled under the new redress rules rather than simply returning to the normal 8-week process.

Complaints outside the scheme’s scope should generally move back into the standard complaint handling process from 1 June 2026.

The FCA motor finance redress scheme

On 30 March 2026, the FCA published its final policy statement introducing a motor finance consumer redress scheme. The scheme covers certain regulated motor finance loans entered into between 6 April 2007 and 1 November 2024.

The FCA estimates that 12.1 million agreements are eligible for compensation, with an average payout of around £830 per agreement. The total redress expected is around £7.5 billion if the FCA’s expected claim rate is met.

The scheme is split by agreement date. Loans taken out from 1 April 2014 have an implementation period ending on 30 June 2026. Earlier agreements, from 6 April 2007 to 31 March 2014, have a longer implementation period ending on 31 August 2026.

If you complain before the relevant implementation period ends, your lender should assess your case earlier than someone who waits to be contacted later.

Does this apply to you?

You may be affected if you had a regulated PCP or HP car finance agreement between 6 April 2007 and 1 November 2024 and the dealer or broker received commission from the lender.

The key issue is not simply whether commission existed. The FCA scheme focuses on whether important information about the arrangement was not clearly disclosed. This may include cases where the dealer or broker could influence the interest rate to earn more commission, where commission was high, or where the dealer or broker had a tied arrangement with a lender.

There are exceptions. For example, very small commission amounts, 0% interest agreements and some cases where no loss was suffered may fall outside compensation. Very high-value loans outside the mass-market scope may also need to be handled outside the scheme.

Our articles on whether your car finance commission was hidden, PCP mis-selling explained, and how car dealers and brokers earn commission explain the background in plain terms.

What compensation could look like

The FCA scheme uses a standardised calculation. For most eligible customers, redress is based on the average of 2 figures: the commission paid and the estimated loss caused by the customer paying a higher APR than they might otherwise have paid.

Interest is then added to compensation, based on the annual average Bank of England base rate plus 1%, with a minimum of 3% in any year. Some payments will be capped so that consumers are not put in a better position than they would have been in if the finance had been arranged fairly.

This means compensation will vary from case to case. The FCA’s average estimate is around £830 per eligible agreement, but some claims will be lower and some will be higher. For more detail, see our article on what compensation might look like in car finance mis-selling cases.

Key deadlines to know

If your finance agreement started on or after 1 April 2014, the relevant implementation period ends on 30 June 2026. If your agreement started between 6 April 2007 and 31 March 2014, the implementation period ends on 31 August 2026.

Lenders then have 3 months from the end of the relevant implementation period to tell complainants whether they are owed compensation and how much.

If you do not complain, your lender should contact you only if it thinks you are likely to be owed money. For agreements from 1 April 2014, this contact should generally happen by the end of 2026. For earlier agreements, it should generally happen by the end of February 2027.

If you are not contacted, you can still complain by 31 August 2027.

The practical message is simple: if you think you were affected, do not wait and hope the lender contacts you. Making a complaint before the relevant implementation period ends should put you into the earlier assessment process.

What about the legal challenge?

The FCA confirmed in May 2026 that the redress scheme had been legally challenged. The regulator has said it will defend the scheme as lawful and as the best way to resolve a widespread and long-running issue.

The legal challenge creates uncertainty around some parts of the scheme, but it does not remove your right to complain. The FCA has also made clear that firms should continue preparation work and keep progressing the information needed to deliver the scheme.

For consumers, the safest approach is to make sure your complaint is logged, your contact details are up to date, and your lender has the information it needs to identify your agreement.

What to do right now

If you have not yet complained, submit your complaint as soon as possible. You do not need to know the exact commission amount before starting. The lender should assess the agreement against the scheme rules.

If you have already complained, your complaint should be carried into the relevant process. You should not need to start again, but you should make sure the lender has your current address, phone number and email.

If your agreement has already ended, the car was handed back, or the finance was settled years ago, you may still be able to complain. Settled agreements are not automatically excluded. Our guide on missold car finance claims in the UK covers this in more detail.

You can complain directly for free. If you choose to use professional support, make sure you understand any fee, success fee or deduction from compensation before agreeing.

Claim First handles mis sold pcp claims on a no win no fee claims basis, with no upfront costs and nothing to pay unless your claim succeeds. We also handle payday loan claims UK, disrepair claims and scam recovery cases under the same No Win, No Fee terms.

FAQs: the May 2026 FCA update

I complained 2 years ago and heard nothing. What happens now?

Your complaint was likely paused. If it falls within the FCA scheme, it should now be handled under the scheme timetable. You should make sure your lender has your current contact details.

What if I never complained?

Submit a complaint now. People who complain before the relevant implementation period ends should be compensated sooner than those who wait to be contacted.

Does the legal challenge mean I should wait?

No. Waiting could delay your case. The scheme may still be affected by legal proceedings, but your right to complain remains.

Can I claim if the car finance has ended?

Yes. Agreements that have been settled or ended can still fall within the scheme if they meet the eligibility criteria.

The window is open

The May 2026 update marks a turning point for millions of UK car finance customers. Whether you complained years ago or have not yet started, the next step is to make sure your claim is properly submitted and your lender has the details needed to assess it.

Start your claim today. Claim First handles everything on a No Win, No Fee basis, and it only takes a few minutes to begin.