Car Finance Redress Scheme Suspended: What It Means for Your Claim

The FCA’s car finance redress scheme was partially suspended on 2 July 2026, after some lenders challenged it in the Upper Tribunal.

If you have been waiting for compensation, that wait just got longer. But the scheme has not been cancelled, your claim has not disappeared, and one important deadline still matters.

Here is where things stand in September 2026.

What has actually happened?

The FCA confirmed the redress scheme on 30 March 2026. It covers car, motorbike and van finance agreements (PCP and HP) taken out between 6 April 2007 and 1 November 2024 where commission was not properly disclosed. The FCA estimates the average payout at around £830 per agreement, with some people getting more and some less.

Some lenders have gone to the Upper Tribunal to challenge parts of the scheme. While that challenge is decided, the tribunal has ordered a partial suspension.

The hearing is listed for 14 to 18 December 2026, or 16 to 26 February 2027 if the case needs extra expert evidence. A judgment is expected in the months after that.

What does “partially suspended” mean for you?

Paused for now:

• Lenders do not have to calculate compensation.
• Lenders do not have to pay compensation.
• Lenders do not have to contact you to tell you that you are owed money.

Still happening:

• Lenders must keep working through complaints and gathering the commission data behind them.
• If you are not owed compensation, your lender should still tell you, subject to limited exceptions. If your agreement started on or after 1 April 2014 and you complained by 30 June 2026, you should hear by 18 November 2026. If your agreement started before 1 April 2014 and you complained by 31 August 2026, you should hear by 18 January 2027.

In short: the queue is still forming, but the payout window is on hold until the tribunal rules.

Will I still get paid?

We don’t know yet, and there is no point in anyone guessing.

If the tribunal upholds the scheme and there is no appeal, the FCA has said payments could begin in 2027. If the challenge succeeds, the FCA will have to rework parts of the scheme, and that would take longer.

What the suspension does not do is remove your right to complain, or wipe out complaints already made.

What should you do now?

If you have already complained: you do not need to do anything. Your complaint stays in the system. Watch for a letter from your lender, because a “you are not owed compensation” decision can still arrive during the suspension, and you may want to challenge it.

If you have not complained yet: you have until 31 August 2027 to make a claim if your lender has not contacted you. Do not treat that as a reason to wait. Lenders write to the address they have on file, so if you have moved since you had the car, the letter telling you about your agreement may never reach you. Complaining now puts your current contact details on record.

If you are not sure whether your old agreement qualifies: dig out what you can. The lender’s name, roughly when the finance started, and the car if you remember it. You do not need the paperwork to start a claim. Our car finance commission claims page explains what counts, lender by lender.

You can complain directly to your lender yourself, for free, and you do not need to use a claims management company to take part in the scheme. If you would rather have someone handle it for you, that is the service we provide, and our fees are explained before you sign anything.

The dates that matter

• 14 to 18 December 2026 (or 16 to 26 February 2027): the Upper Tribunal hears the lenders’ challenge.
• 18 November 2026 and 18 January 2027: dates by which lenders should tell earlier complainants if they are not owed compensation.
• 31 August 2027: the deadline to claim if your lender has not contacted you.
• 2027: the earliest payments could start, if the scheme survives the challenge.

We will update this page when the tribunal rules. This article is general information about the FCA scheme, not personal advice.