The FCA's consumer guidance, updated on 16 September 2026, confirms that parts of its motor finance compensation scheme remain suspended following a legal challenge. Customers should treat earlier payment timetables with caution.
What is the current timetable?
The regulator says the case is due to be heard in December 2026 or February 2027. Until the legal process ends, lenders do not have to calculate or pay compensation under the scheme. If the scheme is upheld and the judgment is not appealed, the FCA expects payments to start in 2027. That is a conditional expectation, not a guaranteed payment date.
What can customers do now?
The FCA continues to recommend complaining directly to the lender if you have concerns. You can do this for free without appointing a claims management company or solicitor. The regulator's consumer page links to lender contact details and complaint tools.
What if a lender contacts you?
Some scheme rules still apply, so certain customers may receive a decision that no compensation is due. Follow the instructions and deadlines in any genuine lender response; silence does not establish eligibility.
How can you keep track?
Keep your agreement, complaint acknowledgement and later correspondence together. Note when you sent each message and retain a copy. If you have several agreements, organise the records by lender and vehicle so that you can identify which agreement a response concerns.
Check the latest official position
This is a summary of the position checked on 30 September 2026. Use the FCA links below for current guidance and the details relevant to your agreement. This article does not assess an individual claim.
Primary sources
This article is an original summary. Check the official sources for the latest position.