The wait for answers over the car finance scandal is set to continue into spring 2027, with another change to the timetable for the legal challenges against the Financial Conduct Authority's (FCA) compensation scheme.

Motorists had previously been told that the Upper Tribunal car finance hearing would finish on 26 February 2027. That date has now moved to 3 March, following further discussions about the evidence needed for the case.

The FCA announced the revised schedule on 26 October 2026 [1], three days after the Tribunal held another case management hearing.

The extra time will be spent examining challenges to the regulator's approach to historic motor finance commission arrangements. Several economic reports still need to be submitted before the hearing can begin.

For consumers, the practical position has not changed. The compensation scheme remains partially suspended, and there is still no date for payments to begin.

What does the longer hearing mean for motorists?

The most important point is that March 2027 is not a payout deadline.

It is when the Tribunal expects to finish hearing the legal arguments. The judges will then consider the evidence before reaching their decision.

The FCA expects that process to take several months after the hearing.

Motorists who were originally hoping for car finance payouts 2026 are therefore looking at a much longer process than initially anticipated.

The revised schedule also raises questions about how soon lenders could start paying compensation if the scheme survives the challenges.

That will depend on the judgment and whether any additional legal or regulatory steps are needed.

For now, the FCA has not provided a date for the first payments under the suspended scheme.

Why has the Upper Tribunal allowed more time?

The change follows a further review of what the parties need to present during the hearing.

The Tribunal has increased the number of hearing days from nine to twelve. The judges will also have four days reserved for preparation.

The additional time comes as the parties work through disagreements about the economic evidence behind the FCA motor finance compensation scheme.

Some of those questions concern how the regulator estimated the financial impact of historic commission practices.

Others involve how the proposed compensation calculations reflect the circumstances of different finance agreements.

The Tribunal has not yet reached conclusions on those issues. Its October directions deal with getting the necessary material ready for examination.

What needs to happen before February 2027?

The next stage involves several rounds of expert evidence.

According to the Tribunal's directions issued on 26 October [2], Mercedes Benz Financial Services must submit its economic report by 13 November 2026.

Volkswagen Financial Services and CA Auto Finance have until 27 November to provide their evidence.

The FCA then has until 16 December to respond to Consumer Voice's expert material. Its responses to the other reports are due by 8 January 2027.

Once the written evidence has been exchanged, the experts will meet to discuss their findings.

By 22 January, they must provide a joint document identifying the points on which they agree and those they continue to dispute. Their meeting must take place by 15 January.

This could help reduce the number of questions that need lengthy examination at the hearing.

The Tribunal has also required the FCA to provide further information to Consumer Voice under confidentiality arrangements.

A review of the case preparations is expected in January, ahead of the hearing beginning on 16 February.

What are the organisations challenging?

The four legal challenges do not all seek the same result.

Volkswagen Financial Services, Mercedes Benz Financial Services and Crédit Agricole Auto Finance have raised objections to aspects of the compensation framework.

Their concerns include the FCA's assessment of consumer harm and the approach used to calculate redress.

Consumer Voice has taken a different position. It has questioned whether the proposed compensation would adequately address the losses suffered by motorists affected by unfair commission practices.

The FCA continues to support an industry wide approach. It argues that dealing with eligible complaints through a common framework would be more efficient than requiring millions of motorists to pursue separate cases.

The Tribunal will consider these competing legal arguments when the substantive hearing takes place.

The latest directions should not be confused with a decision on the challenges themselves. They establish how the remaining evidence should be prepared and presented.

Why are car finance compensation payments still on hold?

The FCA introduced its Motor Finance Consumer Redress Scheme on 30 March 2026 [3], following years of concern about commission practices in the motor finance market.

The scheme was designed to establish a common process for reviewing potentially unfair agreements and calculating compensation.

However, the legal challenges led to a partial suspension in July 2026 [4].

Certain requirements, including those concerning compensation calculations and payments, are currently suspended.

Lenders must still carry out the work required under the rules that remain in force.

This includes preparing information about historic agreements and identifying cases that may need to be assessed once the legal position becomes clearer.

The FCA has also asked firms to consider what they would need to do if the existing scheme cannot proceed.

That could mean handling complaints through the ordinary process rather than through the planned compensation framework.

There are therefore two possible paths ahead. The scheme may continue, subject to the Tribunal's decision and any further proceedings. Alternatively, changes may be needed before affected consumers can receive compensation.

Neither outcome has been confirmed.

How much could eligible consumers receive?

The FCA's estimates give an indication of the potential scale of the compensation programme.

Around 12.1 million historic agreements could qualify for assessment under the scheme. The regulator estimates average car finance compensation of £829 per eligible agreement [5].

Its forecast of approximately £7.5 billion in consumer payouts assumes that 75% of eligible consumers take part.

The scheme covers potentially eligible finance agreements entered into between 6 April 2007 and 1 November 2024.

However, falling within those dates is not enough on its own to establish entitlement.

The amount of any car finance refund would depend on the finance agreement, the commission arrangements involved and the relevant compensation rules.

Some agreements may produce larger payments than others. Some may not qualify for compensation at all.

The October Tribunal directions have not introduced new eligibility criteria or altered the compensation calculation rules. Those rules remain subject to the ongoing legal challenges.

Can motorists still pursue car finance claims?

Yes. The court timetable does not prevent consumers from making complaints about historic finance agreements.

Motorists who suspect car finance mis-selling can still raise their concerns directly with the lender that provided the agreement.

There is no charge for making a complaint yourself.

Those who cannot remember which company provided their finance may be able to find the details through old bank statements, credit records or previous correspondence.

A car finance refund check or PCP claim check may also help identify agreements that warrant further investigation.

For consumers considering PCP claims, the type of finance agreement is only part of the picture. The commission arrangements and other circumstances must also meet the relevant requirements.

Professional assistance is available through FCA regulated claims management companies and solicitors. These services may involve fees, so consumers should check the terms before appointing a representative.

Anyone who has already submitted a complaint does not generally need to make another one because of the latest hearing extension.

What happens after the March hearing?

There is still some way to go before the compensation picture becomes clearer.

The parties must first complete the evidence requirements set by the Tribunal. The substantive hearing will then take place from 16 February to 3 March 2027.

Afterwards, the judges will consider whether the FCA's compensation framework can stand in its current form.

A judgment is expected in the following months, although no exact date has been announced.

For anyone following car finance compensation 2027 developments, the outcome of that hearing will be more important than the extended timetable itself.

The FCA and lenders will need to consider the decision before the next stage of the compensation process can be confirmed.

Meanwhile, consumers can continue checking old agreements and pursuing complaints without waiting for the legal proceedings to finish.

Frequently asked questions

When will PCP claims be settled?

There is still no confirmed date for compensation payments. The Tribunal hearing is due to end on 3 March 2027, with a judgment expected in the following months. Motorists will have to wait for that decision before there is a clearer picture of when payments might begin.

Is the motor finance redress scheme still in place?

Yes. The scheme has not been cancelled, but certain requirements remain suspended. Lenders must continue preparing and follow the obligations that are still in force.

Does the extension mean the FCA will lose the legal challenge?

No. The additional hearing days concern the amount of time needed to examine the case. They do not indicate how the Tribunal intends to rule.

Will we see any more FCA car finance claims update prior to the hearing?

There could be more news as the parties continue to build their evidence ahead of February. We will see a case review in January 2027. If there is any major news this will be published via the FCA or Tribunal.

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References:

1. The FCA announced the revised schedule on 26 October 2026 - https://www.fca.org.uk/news/statements/motor-finance-legal-challenge-be-heard-february-2027
2. the Tribunal's directions issued on 26 October - https://www.fca.org.uk/publication/documents/motor-finance-directions-26-oct-2026.pdf
3. The FCA introduced its Motor Finance Consumer Redress Scheme on 30 March 2026 - https://www.fca.org.uk/publications/policy-statements/ps26-3-motor-finance-consumer-redress-scheme
4. the legal challenges led to a partial suspension in July 2026 - https://www.fca.org.uk/news/statements/motor-finance-scheme-partially-suspended
5. The regulator estimates average car finance compensation of £829 per eligible agreement - https://www.fca.org.uk/publication/policy/ps26-3.pdf