Guides › Car Finance Complaints › Car Finance Offer: Accept or Challenge?
Car Finance Offer: Accept or Challenge?
If your lender offers you redress under the FCA's motor finance scheme, you have 1 month to accept or challenge it. Once you accept, the lender has 1 month to pay. If you are still unhappy, you can go to the Financial Ombudsman by the date in the redress letter. Parts of the scheme were suspended by the Upper Tribunal on 2 July 2026, so timings may change.
At a Glance
Guide Disclaimer
Free guide only. This is a regulated financial matter, so we give free information and letter templates here but do not take these on as cases. We cannot tell you whether you are eligible for a refund or compensation.
CPUK is not authorised or regulated by the Financial Conduct Authority and is not a claims management company.
Your Rights
What the rules say, with a link to the official source for each.
Your Offer
Accepting or Challenging an Offer
If you are offered redress, you have 1 month to accept or challenge it. If you are still unhappy, you can go to the Financial Ombudsman by the date in the redress letter. Once you accept, the lender has 1 month to pay. If you are not owed compensation, expect a reply within about 5 months for complaints made after the deadlines. source
How Much You Might Get
The FCA estimates average redress at about £829 per agreement (it says about £830), but amounts vary and some people get nothing. About 90,000 cases receive all the commission plus interest. Interest is simple, at the Bank of England base rate plus 1%, with a 3% minimum. source
The Financial Ombudsman
If you think your lender has not followed the scheme rules, you can refer your case to the Financial Ombudsman Service. source
Right Now
The Court Suspension
On 2 July 2026 the Upper Tribunal suspended parts of the scheme. Until the legal process concludes, lenders do not need to calculate or pay compensation under the scheme. The FCA says the best thing consumers can do is complain to their lender. No timing for the end of the process was given. source
You Do Not Need a Claims Firm
You do not need a claims management company or law firm. Their fees can reduce what you receive, and the FCA has set up a taskforce targeting poor handling of claims by some of them. The FCA will never ask for your bank details, PIN or passwords. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- 1 monthAccept or challenge a redress offerWithin 1 month
- 1 monthLender to pay after you acceptWithin 1 month
- 6 monthsRespond when a lender contacts youWithin 6 months
- Dec 2026 or Feb 2027Court hearing on the suspended schemeDecember 2026 or February 2027
Steps to Take
Step 1 of 4
Read the offer letter and note the date: you have 1 month to accept or challenge it.
Step 2 of 4
Check the agreement details and the commission information the lender gives you.
Step 3 of 4
If you think the offer is wrong, challenge it in writing with your reasons. Our free letter templates can help.
Step 4 of 4
If you are still unhappy, go to the Financial Ombudsman by the date in the redress letter.
(Tap the numbers to reveal steps)
Where to Go If It Is Not Put Right
Your options, in order, and when each one applies.
Your Lender's Complaints Team
Always start here, in writing, even if you have not complained before.
Financial Ombudsman Service
If you think your lender did not follow the scheme rules.
Good to Know
Small things that make your complaint stronger.
You do not need a claims company to accept or challenge an offer.
Want Help?
We do not take these complaints as cases, but our free letter templates can write your complaint for you, and the Financial Ombudsman Service is free.
Lead reviewer
Luke Marley
Founder and Lead Reviewer
Luke founded CPUK in 2026 after seeing how hard it is for ordinary people to get problems with companies put right. He oversees our guides and checks them against official sources.
Research by Katie Burt, Co-founder and Operations Lead (17 years in the care sector, including managing services for vulnerable adults), and the CPUK Research Team. Researched with AI-assisted research tools, then checked and corrected by our team.
Last checked: 12 October 2026. We are not paid by the companies we write about. Adverts never affect our guidance. Read our editorial policy.
Sources and official links
- fca.org.uk/consumers/car-finance-complaints Checked 12 October 2026
- fca.org.uk/news/statements/fca-confirms-motor-finance-redress-scheme Checked 12 October 2026
- consumercouncil.org.uk/motorfinanceredressscheme Checked 12 October 2026
- fca.org.uk/news/press-releases/millions-car-finance-customers-payouts-fca-goes-ahead-compensation-scheme Checked 12 October 2026