How Long Does a Car Finance Claim Take?
Scheme status (updated 5 August 2026): parts of the FCA motor finance redress scheme are temporarily suspended while the Upper Tribunal considers legal challenges. Lenders do not currently have to calculate or pay compensation under the scheme, the original decision and payment dates no longer apply, and no payment under the scheme is guaranteed. If the scheme proceeds, first payments are expected in 2027 at the earliest. Any dates mentioned below were set before the suspension.
The FCA motor finance redress scheme (PS26/3, 30 March 2026) set fixed timelines for car finance compensation, but the suspension of parts of the scheme means those dates no longer apply as stated. This page sets out the original timetable and what the suspension means for when money might actually arrive.
The Fixed PS26/3 Timetable
PS26/3 sets legally binding deadlines for lenders. Unlike pre-scheme complaints which had no defined end date, your claim now has a firm timeline. The key dates depend on whether your agreement falls under Scheme 1 (pre-April 2014) or Scheme 2 (post-April 2014).
Scheme 2 — Agreements from April 2014 to November 2024Complaint deadline: 30 June 2026
Lender must issue redress determination by: 30 September 2026
You accept/challenge by: 31 October 2026
Payment deadline: November 2026
Scheme 1 — Agreements from April 2007 to March 2014Complaint deadline: 31 August 2026
Lender must issue redress determination by: 30 November 2026
You accept/challenge by: 31 December 2026
Payment deadline: January 2027
What If You Have Not Complained Yet?
If you wait for your lender to contact you rather than complaining proactively, the timeline shifts significantly:
- Lenders must contact eligible non-complainants within 6 months of the implementation period ending
- Scheme 2 non-complainants: lender contact by December 2026
- Scheme 1 non-complainants: lender contact by February 2027
- You then have 6 months to respond, and the lender has a further 3 months to issue a determination
- Payment for non-complainants could be as late as late 2027 or early 2028
Complaining now could mean you receive your compensation 12 to 18 months earlier than if you wait.
What If You Have Agreements Under Both Schemes?
If you financed cars across both periods — for example one agreement in 2012 (Scheme 1) and one in 2017 (Scheme 2) — each is assessed separately under its own scheme timetable, so any payments would arrive separately. With the suspension in place, no arrival dates can be given for either.
See: Multiple Car Finance Agreements
After Payment — How Is Money Received?
Payment is made directly by your lender, typically by bank transfer. Once you accept your redress determination, the lender has one month to pay. They may ask for your bank account details — ensure you are providing these only through official lender channels and not in response to unsolicited contacts.
Related Pages
I’ve Submitted My Complaint — What Happens Next?
Scheme 1 vs Scheme 2 — What’s the Difference?
I Haven’t Complained Yet — What Happens?
Frequently Asked Questions
Can lenders pay earlier than the deadlines?
Yes. The deadlines are maximum timeframes, not minimum ones. Some lenders may process and pay claims faster than the scheme requires. Complaining early increases your chance of earlier payment.
What if my lender misses the deadline?
The FCA has confirmed it will closely supervise compliance and use enforcement powers against lenders that fail to meet scheme deadlines. If your lender misses the determination deadline, you can refer your complaint to the Financial Ombudsman Service.
I complained before PS26/3 was confirmed. Does my timeline reset?
No. Complaints submitted before the scheme confirmation are treated as existing complaints and fall into the priority cohort. Your determination timeline runs from the end of the implementation period.
The final deadline to complain is August 2027. Should I wait?
Complaining is free and puts your complaint on record, and under the original timetable early complainants were to be paid first. Those dates are suspended: no payment under the scheme is guaranteed while the legal challenges run, and no complaint secures a payment date.
You will be redirected to our partner’s website to complete your claim.
Think You May Have a Motor Finance Claim?
The FCA estimates average compensation of around £830 per eligible agreement, but eligibility and payment amounts vary. Some customers may receive nothing. Complaints about agreements started from 1 April 2014 should be submitted by 30 June 2026 to be considered under the earlier timetable. Different dates apply to older agreements. The scheme is currently subject to legal challenge, so dates and payment timings may change.
