Updated: 19 October 2026

Originally Published: 14 June 2025

Anyone who has been waiting for news about a possible car finance refund will know that the timetable has changed several times this year.

When the Financial Conduct Authority (FCA) announced its motor finance compensation scheme in March 2026 [1], it looked as though millions of motorists could finally be approaching a resolution. Instead, legal challenges have pushed the process into 2027, leaving many consumers unsure when they might hear from their lender.

There is now a confirmed date for the next major development. On 13 October 2026, the FCA announced that the Upper Tribunal will hear the challenges to its redress scheme between 16 and 26 February 2027 [2]. A judgment is expected in the following months.

For anyone asking how long does a car finance claim take, this means there is still no definite answer. Complaints can continue, but the legal proceedings are affecting when compensation can be calculated and paid under the scheme.

Here is where things stand in October 2026, what has changed since the scheme was announced and what consumers can do while they wait.

How long do car finance claims take in October 2026?

The time it takes to resolve a complaint depends partly on the lender and the finance agreement. However, the biggest obstacle at present is the legal challenge to the FCA's compensation scheme.

The Upper Tribunal partially suspended the scheme in July 2026 [3]. As a result, lenders do not currently have to calculate or pay compensation under the affected provisions, although other requirements remain in force.

The latest developments are:

• 30 March 2026: The FCA published its final Motor Finance Commission Consumer Redress Scheme.
• 1 July 2026: The Upper Tribunal ordered a partial suspension following legal challenges.
• 13 October 2026: The FCA confirmed the substantive hearing dates.
• 16 to 26 February 2027: The Upper Tribunal will hear the challenges.
• Following the hearing: A judgment is expected in the subsequent months, with the next steps depending on its outcome.

Earlier expectations around payouts 2026 have therefore been overtaken by events. Compensation could begin in 2027 if the scheme is upheld, but the FCA has not confirmed when individual motorists will receive payments.

Why have car finance compensation payments been delayed?

The delay comes from a dispute over how the FCA car finance compensation scheme should operate.

Four organisations have brought legal challenges:

• CA Auto Finance UK Limited
• Consumer Voice Limited
• Mercedes-Benz Financial Services UK Limited
• Volkswagen Financial Services UK Limited

The challenges concern the lawfulness of the scheme and aspects of the regulator's approach to compensation.

The FCA believes an industry-wide redress programme offers a more consistent way of dealing with the large number of affected agreements. However, the Tribunal must consider the challenges before the disputed provisions can move forward.

This has interrupted the timetable lenders were originally working towards.

For consumers, the frustrating part is that having an agreement under review does not necessarily mean a payment decision is close. A lender may already have some of the information it needs, but the legal proceedings could still prevent the complaint from reaching the compensation stage under the suspended rules.

That is why car finance claims are now taking longer than many motorists expected when the scheme was first announced.

What will happen at the February 2027 Upper Tribunal hearing?

The hearing will examine the legal challenges to the FCA's motor finance redress scheme.

The confirmed dates are 16 to 26 February 2027, following directions issued after the Tribunal's October case management hearing.

The FCA expects a judgment in the months afterwards.

It’s worth noting that this isn’t a compensation deadline though. Even if the Tribunal decides in the FCA’s favour, lenders will still require time to assess records, calculate redress and contact customers.

There could also be further legal challenges or alterations to the scheme which may impact the timeline.

So although February 2027 is certainly a date to keep an eye on, motorists should not expect their car finance refund to come knocking straight after the hearing.

Can lenders still deal with complaints during the partial suspension?

Yes. The scheme has not been cancelled, and the suspension does not cover every requirement.

Lenders must continue complying with the provisions that remain in force. They can still gather records, identify relevant agreements and carry out preparatory work.

In some circumstances, lenders must also tell consumers when their agreement does not qualify for compensation.

What remains on hold is the requirement to calculate and make redress payments under the suspended provisions.

This helps explain why some motorists may receive correspondence from their lender while others are still waiting for a decision.

A request for information does not necessarily mean compensation has been approved. Equally, a delay in receiving an outcome does not automatically mean the complaint has been rejected.

How long does a mis-sold car finance claim take if the FCA wins?

Even a successful defence of the scheme would not necessarily produce an immediate wave of payments.

Lenders would still need to complete the relevant checks and apply the FCA's compensation rules to eligible agreements.

Some cases may be easier to assess because the necessary records are available. Others could involve older agreements, missing information or questions requiring further investigation.

The FCA has indicated that payments could begin in 2027 if the scheme survives the challenges.

However, the precise timetable will depend on the judgment and any further steps required.

For motorists wondering how long do car finance claims take, there is currently no reliable number of weeks or months that can be applied to every case.

What if the FCA's compensation scheme is overturned?

The outcome of the legal challenge could change how affected complaints are handled.

If the Tribunal finds against the FCA on some or all of the disputed provisions, the regulator may need to reconsider its approach.

That could involve changes to the existing scheme, further regulatory work or a return to dealing with complaints through the usual complaint-handling process.

The FCA has already asked lenders to prepare for the possibility that the current scheme cannot proceed as planned.

This does not mean the regulator has decided to abandon the programme. It means firms need to be ready for more than one possible outcome.

For consumers, it adds another reason why predicting an individual payment date would be premature.

How can I check old car finance agreements if I no longer have the paperwork?

You don't need to have kept every finance document to start looking into an old agreement. Even if you've changed cars several times, there may still be records showing who provided the finance.

If you're looking into how to find old car finance agreements online free, you may already have enough information to identify your previous lender without realising it.

Think back to how you paid for the car. If the repayments came out of your bank account, the transaction history might reveal a company name you no longer recognise. An old email about settling the finance could be just as useful.

You could also check your credit history with Experian, Equifax or TransUnion, although agreements paid off several years ago may no longer be listed.

Even small details, such as the car's registration number or where you bought it, could help narrow the search.

You may need to piece together information from different records, as no single free online database provides a complete history of everyone's previous car finance agreements.

Could a car finance refund check online help?

If your own searches haven't turned up much, a car finance refund check online may offer another way to look for previous agreements.

Depending on the provider, the search may use your personal details, address history and information about vehicles you've owned.

A car finance refund check is primarily a way to identify finance that may need further investigation. Finding an agreement doesn't establish whether a refund is due.

You can also approach lenders yourself, and making a complaint directly is free.

Does my old agreement fall within the FCA's compensation scheme?

Finding the paperwork is one thing. Working out whether the agreement could qualify is another.

The FCA's scheme concerns certain commission arrangements used in motor finance between 6 April 2007 and 1 November 2024.

For the purposes of the scheme, agreements are divided into two periods. Scheme 1 runs from 6 April 2007 to 31 March 2014, while Scheme 2 covers 1 April 2014 to 1 November 2024.

What matters is how the lender and broker arranged the finance.

For example, under discretionary commission arrangements (DCAs), some brokers could increase the interest rate offered to customers and receive more commission as a result. The FCA banned this practice on 28 January 2021 [4].

Certain arrangements involving high commissions or ties between brokers and lenders may also fall within the scheme.

However, an agreement isn't automatically eligible because it was taken out during those years. The commission arrangement and other relevant circumstances must meet the FCA's requirements.

What makes a car finance agreement potentially unfair?

You might have been happy with the monthly repayments at the time, without knowing how the dealership was being paid for arranging the finance.

The concern behind the car finance scandal is that some commission arrangements may have influenced what customers paid without them being given sufficient information.

For people researching mis-sold car finance UK, it's important to distinguish these practices from simply having an expensive loan.

A high interest rate doesn't, by itself, prove car finance mis-selling. The same applies to PCP car finance. The type of agreement alone cannot establish whether compensation is owed.

Can I check PCP agreements for cars I no longer own?

Yes. Returning or selling a car doesn't necessarily prevent you from looking into its original finance agreement.

This is particularly relevant to motorists who changed vehicles every few years through PCP. You may have dealt with several lenders without keeping the documents from each agreement.

A PCP claims check may help you trace those records. A PCP claim check can also be useful when you remember the vehicle but not the finance provider.

For PCP finance claims, the question is whether the original agreement involved a qualifying commission arrangement.

That means mis-sold PCP car finance may still be worth investigating after the contract has ended.

The same principle applies to PCP car claims involving vehicles that were part-exchanged, returned or sold. What happened to the car later is not, by itself, what determines eligibility.

What could an eligible car finance agreement be worth?

The FCA estimates that compensation will average around £829 per eligible agreement [5], but this isn't a fixed refund.

The regulator expects approximately 12.1 million agreements could qualify. At an assumed participation rate of 75%, its estimate is around £7.5 billion in compensation for consumers, with total industry costs reaching approximately £9.1 billion.

So, how much can you get for mis-sold car finance?

That depends on the individual agreement. For most qualifying cases, the FCA's calculation combines approaches to estimating the financial impact of the commission arrangement. Different rules apply to certain particularly large undisclosed commissions, and interest may be added.

If you're wondering how much compensation for mis-sold car finance you could receive, the £829 average is a useful reference point, not a personal estimate.

A car finance refund doesn't normally mean getting back the full purchase price, deposit or every monthly repayment.

The amount of car finance compensation, including any PCP refund, will depend on the relevant circumstances and scheme rules.

What should I do if I think my old finance may qualify?

You can still raise a complaint, even though the legal challenges have delayed parts of the FCA's compensation scheme.

The Upper Tribunal is scheduled to hear those challenges between 16 and 26 February 2027. That is a hearing date, not a confirmed date for refunds.

If you've identified your lender, you can make a car finance claim directly without paying a fee. If you're still trying to work out who financed the vehicle, focus on gathering the details needed to trace the agreement.

For anyone who has already complained, it's worth keeping the complaint reference and any correspondence from the lender together.

There is no guarantee that submitting a complaint now will lead to an earlier payment. The legal proceedings will influence what happens next.

However, you don't need to wait until February 2027 to find out which agreements you held or begin making enquiries.

Will a claims management company handle car finance claims?

It can be hard to recall who paid for your car many years ago, particularly if you have owned several cars over the years or disposed of the paperwork.

You can use a regulated claims management company (CMC) which typically assist with car finance claims. They can trace old agreements, examine records and correspond with lenders on your behalf.

Find out how much the service will cost you before you agree to use them, how they will calculate their fees and how to cancel the service. Check that you haven’t already appointed another company or solicitor to act on your behalf for the same claim, as you may be charged twice.

You can choose to use a claims management company (CMC) to make a claim but you don’t have to. You can complain to your lender directly and it won’t cost you anything.

Using a representative doesn’t guarantee you will win compensation and it will not accelerate the process at the Upper Tribunal.

How to avoid PCP claim scams

Don’t trust messages out of the blue saying you’ve been approved for a refund on your car finance.

You may be asked to pay a fee up front to receive the cash.

Scammers might pretend to be from your lender, a claims company or even from the FCA.

They’ll try and pressure you into accepting. Scammers bank on you not taking the time to think about who you’re dealing with.

Think you’ve been targeted by fraudsters claiming you can get a refund on PCP car finance? That might be one of the many PCP claim scams.

Never give your bank details to anyone asking for them or send money in exchange for an unexpected message.

Check the FCA’s Firm Checker [6] to see if a business is properly authorised.

Always use the official website to contact an organisation. Don’t call them using any phone number or visit a website linked from the message.

You can complain to your lender directly about your car finance agreement and it won’t cost you anything.

Frequently asked questions

How long do car finance claims take in 2026?

There is no guaranteed payment schedule. Portions of the FCA's program are on hold until the litigation plays out, with the hearing scheduled for February 2027. In the meantime, you can still file a complaint.

How long does a mis-sold car finance claim take?

It varies by lender and how easily you can find and examine the agreement. Even if you have all of the information, the pending litigation may take awhile to get compensated.

When is the Upper Tribunal hearing?

The hearing is set on 16 and 26 February 2027. An FCA decision is expected in months, though no official date has been set.

Will there be car finance payouts in 2026?

The original payouts 2026 has been postponed. Payments could potentially start as early as 2027, based on how the legal proceedings go, but no official date has been released.

How much can you get for mis-sold car finance?

The FCA expects the average compensation per eligible agreement to be around £829. Your actual refund will depend on your individual finance arrangements and which calculation rule applies.

Is there a guaranteed payout for mis-sold car finance?

No there isn't. Just because you have an agreement made within the relevant dates doesn't mean it's eligible. The original commission structure will need to fit the FCA's rules.

How can I search for old car finance agreements for free online?

Look through old bank statements, emails and credit reports for any mention of who your lender was. Some PPI check services also offer free initial searches but may charge for further claim help.

I've finished my PCP agreement. Can I still claim?

Yes, you may. Even if you have paid off your finance agreement, returned the vehicle or traded it in you may still make a PCP claim. You do not become ineligible just because you no longer own the car, eligibility is based on your original agreement.

Will I get my money back if a PCP claim check is successful?

Not necessarily. A PCP claim check can help you track down an old agreement if you no longer have it. However, the finance still needs to be checked to see if a PCP refund is possible.

What if my lender rejects my complaint?

Ask the lender to clarify its decision if you don't understand something. If your lender rejects your complaint you may be able to refer the complaint to the Financial Ombudsman Service (but there are time limits that apply).

If the FCA scheme is paused, can I still make a complaint?

Yes. You can continue contacting lenders about potentially unfair finance arrangements. The partial suspension does not prevent new complaints.

When could motorists finally receive compensation?

For motorists following the car finance mis-selling developments, the wait for refunds looks set to continue into 2027.

The Financial Conduct Authority has announced that the Upper Tribunal will hear arguments between 16 and 26 February 2027. We expect a decision to be reached several months later.

This doesn’t mean that consumers will start receiving payments straight away. Depending on the decision, there could be changes to how the scheme operates. Lenders may also need time to check agreements and calculate payouts.

Motorists should continue to trace old finance deals and submitting complaints in the meantime. This also applies to anyone thinking of making a PCP compensation claim for a vehicle you’ve already sold on, returned or finished paying off.

February 2027 is an important deadline for the legal challenge but isn’t a guaranteed date that refunds will begin. Hopefully we’ll know soon enough when people can expect to receive payments.

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References:

1. the Financial Conduct Authority (FCA) announced its motor finance compensation scheme in March 2026 - https://www.fca.org.uk/publications/policy-statements/ps26-3-motor-finance-consumer-redress-scheme
2. On 13 October 2026, the FCA announced that the Upper Tribunal will hear the challenges to its redress scheme between 16 and 26 February 2027 - https://www.fca.org.uk/news/statements/motor-finance-legal-challenge-be-heard-february-2027
3. The Upper Tribunal partially suspended the scheme in July 2026 - https://www.fca.org.uk/news/statements/motor-finance-scheme-partially-suspended
4. The FCA banned this practice on 28 January 2021 - https://www.fca.org.uk/news/press-releases/fca-ban-motor-finance-discretionary-commission-models
5. The FCA estimates that compensation will average around £829 per eligible agreement - https://www.fca.org.uk/publication/policy/ps26-3.pdf
6. FCA’s Firm Checker - https://www.fca.org.uk/consumers/fca-firm-checker