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If you took out car finance before April 2014, one date should be in your diary: 31 August 2026. It is the key car finance complaint deadline for older agreements under the FCA’s redress scheme rules. Complain to your lender by then and, even while the wider scheme is paused by a legal challenge, your lender must tell you where you stand by 18 January 2027.

Here is what the deadline means, who it affects, and why acting now still matters despite the delays.

Why the 31 August 2026 car finance complaint deadline matters

The FCA’s motor finance redress scheme, confirmed in March 2026, covers car, van and motorbike finance agreements taken out between 6 April 2007 and 1 November 2024. It is split into two parts: one for agreements starting on or after 1 April 2014, and one for older agreements dating back to April 2007.

On 2 July 2026, the Upper Tribunal suspended parts of the scheme while it considers legal challenges. But not everything is on hold. Lenders must still identify affected agreements, gather commission data, and respond to complainants who are not owed compensation by set deadlines.

For agreements that began before 1 April 2014, the FCA has confirmed that if you complain by 31 August 2026 and you are not owed compensation, your lender should tell you by 18 January 2027. Complain after that date and the answer can take up to five months from when your lender receives your complaint.

Who could be owed compensation?

The scheme is designed to compensate drivers whose finance deals involved one of three unfair features:

• A discretionary commission arrangement, where the dealer or broker could raise your interest rate to earn more commission
• A high commission arrangement, where the commission was an unusually large share of the cost of credit
• A tied arrangement between the lender and the dealer that was not made clear to you

When the scheme was announced, the FCA estimated the average payout at around £830 per agreement, with total compensation expected to reach about £7.5 billion. Individual amounts will vary — some people will receive more, others less.

What the Upper Tribunal suspension means for your claim

The Tribunal will hear the challenges on 14–18 December 2026 or 16–26 February 2027, with a judgment expected in the months that follow. Until the legal process concludes, lenders do not have to calculate or pay compensation. If the scheme is upheld and not appealed, the FCA expects payments to begin in 2027.

If the scheme is overturned in whole or in part, the FCA will decide what happens next — which could mean lenders resolving complaints individually instead. Either way, a complaint lodged now is already in the system, which is why the regulator and consumer groups alike say it still makes sense to complain sooner rather than later.

What happens after you complain?

If your lender concludes you are not owed compensation under the scheme, it must write to tell you, subject to limited exceptions. For newer agreements (started on or after 1 April 2014) where a complaint was made by 30 June 2026, that answer should arrive by 18 November 2026. For pre-2014 agreements, complaining by 31 August 2026 secures an answer by 18 January 2027.

If you hear nothing by those dates, your complaint may well still be in scope for compensation — though nothing is certain until the legal challenges are resolved.

What should you do now?

Older agreements are the ones where paperwork goes missing and lenders’ records get thin, so it pays to act early. Dig out anything you still have: the lender’s name, the agreement number, the dealership and rough dates. Even without paperwork, lenders must check their own records once you complain.

You can complain directly to your lender for free — you do not need to pay anyone to do it, and the FCA’s car finance claims page explains how. If you are not sure whether your old agreement qualifies, you can check your eligibility in a couple of minutes.

With the 31 August 2026 deadline approaching for pre-2014 agreements, the window to guarantee an early answer is closing. Find out if you qualify before the date passes.

The UK’s car finance redress scheme has hit another delay. On 2 July 2026, the Upper Tribunal partially suspended the Financial Conduct Authority’s (FCA) compensation scheme while it hears legal challenges from several lenders. If you were mis-sold a car finance agreement, here is what the suspension means and why it still pays to act now. You can check your eligibility at any time.

What is the car finance redress scheme?

The FCA confirmed its motor finance consumer redress scheme in policy statement PS26/3. It is designed to compensate people who took out car finance before January 2021 where a lender failed to properly disclose commission paid to the dealer or broker who arranged the deal.

These are often called discretionary commission arrangements, where the dealer could raise your interest rate to earn more commission. The FCA estimated around 12.1 million agreements could be eligible, with a typical payout of about £830 per claim and a total bill of roughly £7.5 billion.

Why has the scheme been partially suspended?

Four parties have challenged the scheme at the Upper Tribunal. Three are lenders—CA Auto Finance, Mercedes-Benz Financial Services and Volkswagen Financial Services—while the fourth, Consumer Voice, is pushing for higher payouts for drivers.

Under the partial suspension, firms are not currently required to calculate or pay compensation, or send communications about redress owed, in line with the original scheme timetable. Lenders must still comply with all the rules that have not been suspended and continue much of the admin work in the background.

When will the delay be resolved?

The Upper Tribunal has confirmed it will hear the challenges on 14 to 18 December 2026, or 16 to 26 February 2027. The exact dates depend on whether any party applies for further expert evidence or disclosure.

Even if the challenges fail, payouts are unlikely to begin before mid-2027. The FCA wants firms to keep identifying affected customers now so compensation can start quickly once the legal process concludes.

What should you do while the scheme is suspended?

The suspension does not stop you from taking action. In fact, getting your complaint in now means you are already in the queue when the scheme resumes.

• Complain to your lender if you believe you had a discretionary commission arrangement before January 2021.
• Ask for a review if your lender rejects your case and you think it has made a mistake.
• Escalate to the Financial Ombudsman Service if you remain unhappy with the outcome.
• Keep your paperwork, including your finance agreement and any correspondence, in one place.

Lenders are expected to keep complainants updated on the legal challenge, what the suspension means and the likely impact on timings.

Could you be owed compensation?

If you bought a car on PCP or hire purchase before January 2021 and were not told how much commission the dealer earned, you may have grounds to claim. The delay is frustrating, but it does not change your underlying rights—it simply pushes back when money is likely to be paid.

The sooner you check your position, the sooner your claim can be assessed. Find out if you qualify using our free eligibility checker and be ready for when the redress scheme moves forward.

The car finance redress scheme has hit another hurdle. On 2 July 2026, the Upper Tribunal partly suspended the Financial Conduct Authority’s (FCA) scheme after several lenders challenged it. As a result, compensation payments now look unlikely to start before 2027. If you once had a car finance agreement, here is what the delay means for your claim — and why it still pays to act now.

Why has the car finance redress scheme been delayed?

The FCA confirmed its redress scheme earlier in 2026. It aims to compensate drivers who took out mis-sold car finance, especially deals that hid discretionary commission arrangements. However, four commercial parties then took the scheme to the Upper Tribunal.

Those challengers are Consumer Voice, which Courmacs Legal represents, plus Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance. On 2 July 2026, the tribunal paused parts of the scheme on terms it agreed with these firms. You can read the FCA’s statement on the suspension for the official position.

What the partial suspension actually means

A partial suspension does not scrap the scheme. Instead, it pauses the sections that force lenders to start paying out. Meanwhile, preparation work carries on in the background. In practice, this means three things:

• Lenders do not yet have to calculate or pay redress. The pause lasts until the tribunal process ends.
• Firms can also hold back communications about compensation for now.
• Lenders can still identify affected customers and progress complaints, so payouts move quickly once the car finance redress scheme restarts.

This approach stops firms repeating work if the challenges succeed. At the same time, it keeps the process moving where possible.

When could car finance payouts begin?

The Upper Tribunal will hear the legal challenges in one of two windows. The first runs from 14 to 18 December 2026. The second runs from 16 to 26 February 2027. The final choice depends on whether any party asks for more expert evidence or disclosure.

A judgment would then follow a few months later. If the tribunal backs the scheme and no one appeals, compensation could start in 2027. If the tribunal instead strikes down all or part of it, the FCA may need to consult on a revised scheme. That route could push redress into 2028 or beyond.

How much could you be owed?

The scale of the scheme is huge. The FCA estimates that around 12.1 million agreements could qualify for compensation. It puts the typical payout at roughly £830 per claim. Across the industry, the regulator expects total payouts near £7.5 billion.

Your own figure will depend on your agreement size, the interest you paid and the commission involved. Drivers with larger or multiple agreements could therefore receive considerably more than the average.

Should you still make a car finance claim now?

Yes. The delay changes when lenders pay, not whether you can claim. So getting your complaint on record now puts you near the front of the queue once the scheme restarts.

From 1 July 2026, lenders should usually tell you within five months if they think you do not qualify. Filing early therefore keeps your options open. You can check your eligibility in a couple of minutes and see whether your agreement likely qualifies.

What happens next

The next milestone is the Upper Tribunal hearing in late 2026 or early 2027. Until then, register your claim and get your details ready. We will update this news page as the timetable and the FCA’s guidance develop, so you always know where things stand.

Did you take out a car finance agreement before January 2021? Find out if you qualify and get your claim ready for the day payouts begin.