Guernsey and Jersey customers excluded from FCA redress programme

LONDON - Confusion surrounding the FCA car finance compensation scheme has intensified after officials confirmed that motorists in Guernsey and Jersey are not covered by the UK redress programme [1] linked to the car finance scandal.

The clarification came after concerns from consumers in the Channel Islands who believed they could pursue car finance claims and PCP claims through the Financial Conduct Authority’s proposed compensation scheme for mis-sold car finance agreements.

Channel Islands excluded from UK scheme

The Channel Islands Financial Ombudsman said the FCA car finance redress programme only applies to UK motor finance customers and is therefore unavailable to consumers in Guernsey and Jersey.

The update has raised concerns among affected drivers who had hoped to seek a car finance refund or PCP refund under the compensation plan aimed at addressing widespread car finance mis-selling involving undisclosed commission arrangements.

Legal challenges continue to delay payouts 2026

At the same time, legal disputes over the compensation scheme are expected to delay progress further [2], with industry experts warning that payouts 2026 may now not begin until November at the earliest.

The FCA is facing ongoing court challenges from lenders and other parties over the structure and scope of the compensation scheme. Those legal battles have already created uncertainty for millions preparing to file a car finance claim or PCP claim.

Consumer advocates warn that continued delays could leave affected motorists waiting even longer for clarity on car finance compensation and eligibility.

Drivers continue car finance refund checks

Despite the uncertainty, many motorists are continuing with a car finance refund check to determine whether they may have been affected by mis-sold car finance or hidden commission arrangements on PCP and hire purchase agreements.

Interest in car finance claims has continued to rise as awareness of the wider car finance scandal grows across the UK.

FCA car finance scheme remains under scrutiny

The FCA has defended its approach, arguing the compensation scheme is intended to provide a consistent route for resolving complaints linked to car finance mis-selling. However, questions remain over how quickly compensation can be delivered if legal proceedings continue throughout the year.

For consumers pursuing a car finance claim, the latest developments mean further uncertainty over when car finance compensation and PCP refund payments may eventually be processed.

What happens next

A court hearing linked to the legal challenges is not expected before later this year [3], meaning the future timeline for payouts 2026 remains unclear.

Until then, the FCA car finance scheme continues to face pressure from legal disputes, regulatory scrutiny and growing demand from motorists seeking compensation linked to the UK’s biggest financial mis-selling controversy in years.

_________

References:

1. officials confirmed that motorists in Guernsey and Jersey are not covered by the UK redress programme - https://www.bbc.com/news/articles/cq6p96vlm1po
2. legal disputes over the compensation scheme are expected to delay progress further - https://www.autocar.co.uk/car-news/consumer/car-finance-scandal-payments-face-big-delay-due-legal-challenges
3. A court hearing linked to the legal challenges is not expected before later this year - https://www.reuters.com/sustainability/boards-policy-regulation/uk-watchdog-says-car-finance-legal-challenge-hearing-unlikely-before-october-2026-05-08/