If you think your car finance was mis-sold, the safer answer is usually to complain now rather than simply wait. You can complain directly to your lender for free, and the FCA says consumers who are concerned about motor finance commission arrangements should do so. Starting a car finance mis-selling claim also protects you if your lender’s records are incomplete, your contact details have changed, or an old agreement is not picked up automatically.

There is one important update. On 2 July 2026, the Upper Tribunal suspended parts of the scheme while legal challenges are heard. That means lenders do not currently have to calculate or pay compensation under the FCA scheme, or send redress offer communications, until the legal 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, payments are expected to begin in 2027.

First, were you actually mis-sold?

Before deciding whether to wait, check whether your agreement may fall within scope. The FCA scheme is focused on motor finance agreements taken out between 6 April 2007 and 1 November 2024 where certain commission or tie arrangements were not properly disclosed. The unfair features include discretionary commission arrangements, high commission arrangements, and some tied arrangements between lenders and brokers.

That does not mean every car finance customer will receive compensation. The FCA estimates 12.1 million agreements are eligible, with average redress of about £829 per agreement, but individual outcomes vary. Some people may receive more, some less, and some nothing.

Our guide on how car finance mis-selling works explains the common issues. It is not only PCP agreements that may be relevant, as hire purchase mis-selling can also qualify where the facts fit. If your complaint is about affordability checks rather than commission disclosure, that may still be worth raising, but it may sit outside the FCA scheme and be handled separately.

The case for complaining now

Complaining now puts your case on record. That matters because lenders only have to contact people they identify as potentially owed money, or those who are timed out of the scheme. If you moved house, changed your name, no longer use the same email address, or had more than one agreement with different dealers, waiting for a letter carries a risk.

The FCA’s final scheme rules also say consumers who are not contacted can still complain to their firm by 31 August 2027. That is the long-stop date currently built into the scheme, so leaving it too late is not sensible.

Even if you have already paid the agreement off, you may still qualify. Our guide to claiming after you have settled your car finance explains why old agreements can still matter.

The case for waiting

Waiting is not unreasonable in every case. If your agreement is clearly in scope, your lender has up-to-date details, and you are comfortable dealing with the process yourself, you may decide to wait for contact. The FCA scheme is designed so lenders contact consumers who may be owed compensation.

But the timetable is now uncertain because of the tribunal suspension. Complaining today will not make a payout arrive immediately while the legal challenge is ongoing. What it does do is preserve your position and make sure the lender has to deal with your complaint once the process moves forward.

Do you need to pay anyone?

No. You can complain directly to your lender for free, and if you disagree with the outcome you may be able to take it to the Financial Ombudsman for free. The FCA also says you do not need to use a claims management company or law firm to take part in the scheme.

The honest trade-off is convenience against cost. If you are comfortable finding the lender, completing forms, keeping records and chasing replies, doing it yourself keeps any compensation in your pocket. If you would rather someone else handle the paperwork, a claims service may help, but it will normally take a share of any payout. Before deciding, it helps to understand how much compensation you could claim and what a payout might look like.

A quick word on your credit file

Complaining does not, by itself, harm your credit score. What can cause problems is stopping payments while the agreement is still live. Keep paying unless your lender agrees otherwise. Our note on how complaining affects your credit file explains what does and does not change.

Where that leaves you

For most people, complaining now is the safer move. It costs nothing to complain yourself, it reduces the risk of being missed, and it means your case is ready when the scheme restarts. If you would prefer help, Claim First can handle the process on a no win, no fee basis, subject to eligibility and terms. We also help with payday loan refunds, housing disrepair claims and scam recovery.

Check where you stand today, then decide whether to complain directly or ask someone to manage it for you.