Motorists told to act now on car finance claims ahead of payouts 2026 announcement

LONDON — The Financial Conduct Authority is set to release final details of its long-awaited FCA car finance redress scheme later today, March 30 [1], with millions of motorists potentially eligible for car finance compensation in one of the UK’s largest financial scandals. The decision will determine how car finance claims tied to the ongoing car finance scandal will be processed and when payouts 2026 could begin.

This could cover mis-sold car finance, where lenders and dealers have undisclosed commission arrangements that could have resulted in higher interest payments for borrowers. Claims could relate to deals made between 6 April 2007 and Nov. 1, 2024. Potentially up to 14million agreements will be reviewed [2].

Motorists may be able to submit a car finance claim or PCP claim if their agreements involved car finance mis-selling, including discretionary commission arrangements, high commission structures or undisclosed lender-broker relationships.

If your agreement fell victim to car finance mis-selling you could be entitled to a car finance refund or PCP refund. As there isn’t an easy way to find out which agreements are entitled to a refund, unless you make a car finance claim, many people have been asking how to get a car finance refund check to see if they’re eligible.

The FCA has already paused firms from handling car finance claims, with the freeze set to lift on May 31, 2026 [3]. Once the scheme is implemented, lenders will be given a short preparation period before reviewing car finance claims and PCP claims.

Claims made sooner rather than later should be prioritised, giving people a better chance of receiving payouts 2026. The later you leave your car finance claim, the longer you could be waiting until 2027 to receive a payout.

Previous estimates suggest average car finance compensation could be around £700 per claim [4], although final figures and eligibility criteria will be confirmed in the FCA’s announcement.

The FCA-led route is the quicker and more consumer friendly option but some consumers may still choose to take legal action against a car finance provider to try and claim higher car finance refunds or a higher PCP refund, but this could involve legal fees and a longer time-frame.

With the regulator’s decision expected within hours, the coming period is seen as critical for motorists to submit a car finance claim and position themselves for earlier access to car finance compensation linked to the ongoing car finance scandal.

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References:

1. The Financial Conduct Authority is set to release final details of its long-awaited FCA car finance redress scheme later today, March 30 - https://www.fca.org.uk/news/statements/timing-fca-motor-finance-announcement 
2. Potentially up to 14million agreements will be reviewed - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme
3. The FCA has already paused firms from handling car finance claims, with the freeze set to lift on May 31, 2026 - https://www.fca.org.uk/news/statements/pause-motor-finance-complaints-handling-lift-31-may-2026
4. Previous estimates suggest average car finance compensation could be around £700 per claim - https://www.fca.org.uk/publication/corporate/motor-finance-consultation-analyst-briefing.pdf