Waiting. And waiting some more. The drivers at the heart of the car finance scandal won’t see a pound of compensation until the spring of 202 7, if they’re lucky. The Financial Conduct Authority (FCA) had a plan ready, but an Upper Tribunal order just slammed on the brakes. Partial suspension. That means no calculating payouts, no writing cheques, not even until late 2026.
Why? Because someone decided to sue.
Four major lenders launched legal challenges against the FCA’s proposed redress scheme. They claim it’s disproportionate. Illegal even. Mercedes-Benz, Volkswagen, and Crédit Agricole aren’t just complaining they’re arguing this interferes with their property rights under the European convention on Human rights. On the other side Consumer Voice calls it out as a scheme that protects the very firms broke the law in the first place.
The numbers sting anyway. The average payout is estimated at £829. Not exactly a retirement fund but still money lenders are fighting tooth and nail to avoid handing over.
The courtroom drama drags on.
The Tribunal won’t even hear the arguments until December 2026 or possibly February 2027? That is an absurdly long wait for people who already have paperwork proving they were misled. During this hiatus finance firms are off the hook. No contact needed about potential payouts. Nothing.
What happens after the verdict? Who knows.
If the FCA’s plan survives they still can’t start paying until spring 2027 because administrative machinery takes time. If it falls apart though the regulator says it “will need to decide what to next” implying more delays more hearings, and perhaps 2028 before anyone sees a dime. The FCA argues their original scheme was the “simplest route” for consumers, a statement that feels increasingly ironic as the timeline stretches into next year.
“If we were to seek views on revised scheme… compensation could be delayed until 28 or beyond.”
So the advice remains stubbornly simple despite the chaos: file your claim yourself. Do not hire a claims management company. They are unnecessary middlemen who might take over 30% of your cut for doing absolutely nothing. Just send your complaint directly. It ensures your case doesn’t slip through cracks caused by third-party chaos.
There is one glimmer of immediate action lenders must still perform. Even while paused on payments they cannot ignore the silent sufferers. Those with agreements starting on or after April 201 who complained by June 30, 2026? Lenders must contact them by November 18 this year. Old agreements pre-dating April 2014 require contact by January 2027, assuming the complaint landed before August this year. If you complain after those deadlines and aren’t owed a dime, expect a call within five months.
The system is gridlocked. The lawyers are billing. You’re stuck in the middle holding receipts that don’t count yet. Maybe by next winter. Maybe never.
