When Will Car Finance Compensation Be Paid?

The Short Answer

• 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

• When Payments May Begin

  If the scheme is upheld by the court and not appealed, the FCA expects payments to begin in 2027. The legal case is due to be heard in December 2026 or February 2027. source

• Lender Deadlines

  If a lender needs to respond to you, the FCA's dates are: for agreements from 1 April 2014 where you complained by 30 June 2026, the lender should contact you by 18 November 2026. For earlier agreements where you complained by 31 August 2026, by 18 January 2027. Because of the legal challenge, timing is uncertain, and no reply by these dates does not mean you are owed nothing. source

• Lenders Contacting You

  Lenders must contact people who have not complained but may be owed money. If you have not been contacted, you can still complain to your lender until 31 August 2027. source