Updated: 16 January 2026

Originally Published: 21 February 2025

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If you are looking into PCP refunds and wondering how long do car finance claims take, you are not alone. Many UK drivers are revisiting older agreements because the car finance scandal has raised serious questions about fairness, disclosure, and whether some deals may count as mis-sold car finance.

The encouraging part is this: you can still take action even if you do not have full paperwork.

The realistic part is this: timelines and outcomes are harder to predict right now because complaint handling is still shaped by regulation, FCA updates, and an industry-wide pause for certain complaints.

This guide sets out what is happening as of January 2026, what real timelines look like and how to protect your position as the system heads towards the FCA's next steps.

Quick background: Why 2026 timelines are not straightforward

Car finance complaints usually follow a familiar pattern:

• You complain to the lender
• The lender investigates
• You receive a final response
• If you disagree, you can escalate

In 2026, that structure still exists, but some commission-related complaints are not moving through the system in the normal way. This is largely due to two connected reasons.

FCA context: What has happened so far, and why it matters

The FCA consultation has concluded, and the market is awaiting the next stage [1]

The FCA has already completed a consultation on how commission-related motor finance complaints should be handled consistently. The industry is now waiting for updates and decisions that may shape the final approach.

This matters because it could influence:

• how lenders assess complaints
• what evidence is required
• what redress looks like in practice
• how a refund on car finance is calculated
• whether refunds are paid individually or through a wider programme

This is also why many drivers are seeing slower movement than expected. It is not always because their case is weak. It is often because the overall system is still being finalised.

The pause on lender final responses: Expected until May 2026

For many commission-related cases, lenders are operating under a temporary pause on issuing final responses.

As of January 2026, the pause is expected to remain in place until May 2026 [2].

That does not mean you cannot raise a complaint now. It means you may receive an acknowledgement and a holding update rather than a full decision until the pause lifts.

A key detail: this pause does not include leasing complaints. Leasing complaints follow different rules and can move on a different timeline.

What the FCA’s proposed redress programme could change

It is also worth being clear about what may change next.

If the FCA implements a formal redress programme, it could affect how PCP refunds and wider refunds are delivered. This could shape:

How refunds are calculated

A redress programme could standardise what counts as harm, and how much compensation is owed.

How refunds are issued

Some refunds may be handled through a more structured process, rather than case-by-case negotiation.

How quickly refunds are paid

Even if complaints are upheld, payment speed may depend on how the programme is rolled out and how many agreements are included.

How communication works

Drivers may receive more “process updates” rather than detailed individual responses at certain stages.

This is one reason it is difficult to promise a neat timeframe for how long do car finance claims take. The system is still moving toward a settled process.

For readers who want deeper guidance on timing expectations, this page on how long do car finance claims take might be of help.

The realistic answer: How long do car finance claims take in 2026?

In ordinary conditions, lenders aim to handle complaints within set timeframes. In 2026, it helps to think of the journey in two parts.

Part 1: Getting your complaint logged and traceable

This part of the process often still moves forward, even while the pause is in place.

Typical timeframe: 1 to 8 weeks

At this stage, you are mainly doing one important thing: getting your complaint safely logged and traceable.

That usually looks like this:

• Complaint submission: immediate
• Acknowledgement and reference number: often within 1 to 2 weeks
• Tracing the agreement and confirming key details: often 2 to 8 weeks

For many drivers, this is the point where things start to feel more settled. You are no longer guessing whether your complaint “counts” or whether it has disappeared into a void. You have a reference number. You have confirmation it has been received. You also have a clear paper trail showing you raised the issue.

Part 2: Receiving a full final response and refund outcome

This is the stage where the pause and the FCA process matter most.

Typical timeframe: it varies a lot

If your complaint sits in the paused group, you may not get a full final response until after May 2026. After that, lenders should start sending full responses again. Timings will still differ from case to case.

The wait often depends on:

• how many complaints the lender has in the queue
• how quickly they clear backlogs
• the staff and systems they have in place
• what the FCA confirms next
• whether the FCA brings in a formal redress program
• how fast lenders apply the final rules

If you want the wider picture in one place, this hub on car finance claims updates may help.

What a “refund” usually means in PCP refunds

When people search for a refund on car finance, it is easy to assume it means getting every payment back.

In reality, most refunds are more specific. They are usually linked to whether you paid more than you should have because the agreement was sold, structured, or priced in a way that was not fair or clear.

This is why these cases are often discussed under mis-sold car finance.

Refund outcomes can include:

• a refund of overpaid interest
• compensation linked to undisclosed or unfair costs
• a balance adjustment (if finance is still active), followed by payment if a surplus remains

For a plain-English explanation of the wider issue, this guide on the car finance scandal is helpful.

Step by step: What happens after you raise a complaint?

Even while the pause is in place, most complaints still follow a recognisable structure.

Step 1: You raise the complaint

You can complain directly to the lender. You do not need to wait for a future scheme to be announced.

Many drivers start a complaint simply because they want the agreement reviewed and formally logged.

Step 2: Your complaint is acknowledged

You may receive:

• confirmation it has been logged
• a complaint reference number
• a summary of what happens next
• a note about the pause if it applies

This is an important document. Save it.

Step 3: The lender traces the agreement

This is the stage where a lot of people start to worry, especially if the paperwork is long gone. It can feel like you have nothing solid to prove the agreement ever existed.

In practice this is often not a problem as lenders are normally able to trace an agreement based on even the smallest amount of information, such as:

• your full name and date of birth
• your address history
• the vehicle registration
• an approximate start date or year
• evidence of payments from bank statements
• Even if you only have some of these details, it can still be enough for the lender to find the agreement in their system.

Step 4: You receive a holding update or limited response

If your complaint falls within the paused category, you may receive a response that feels disappointing at first. It can read like a non-answer, even though your complaint is still active.

These letters often say things like:

• they cannot conclude the complaint yet
• they are waiting for FCA guidance
• they will update you later
• your complaint is on hold

It’s completely normal to feel frustrated when you receive an update like this. The wording can sound blunt or unhelpful. In most cases, it is just standard language lenders are using during the pause. It does not mean your complaint has been rejected, or that it is not valid.

Step 5: A fuller response and outcome follow later

After May 2026, fuller handling should restart.

Should the FCA implement a redress programme, there could be another change to the format and timing of outcomes. Some refunds may be distributed through a formal programme.

For a comprehensive overview of what counts as mis-selling and what compensation can look like, this guide on mis-sold car finance supports the context.

The easiest first step: A free car finance refund check online

If you are not ready to write a complaint letter yet, you can still take a safe first step.

Many drivers begin with a car finance refund check online using a free eligibility checker.

This route is popular because it can be done with:

• free checks
• no upfront cost
• no paperwork needed
• no documents required at the start

You can start your car finance refund check online here.

A checker cannot guarantee an outcome. It can help you understand whether your agreement may be worth exploring and what details to gather next.

Using a claims management company: Support with the process

Some drivers feel comfortable handling everything themselves. Others would rather have support, especially when the process feels unclear or time-consuming.

This can be a sensible option if:

• your paperwork is missing
• you have had more than one agreement over the years
• you are not sure which lender was involved
• you do not want to spend weeks chasing updates
• you want someone else to handle the admin and follow-ups

A reputable claims management company can support you in a very practical way. They can check your eligibility using whatever information you do have, even if it is incomplete. They can also help trace agreement details and lender records, which is often the hardest part for people doing it alone.

If you choose to go ahead, they can manage the complaint process on your behalf. That includes the paperwork, the follow-ups, and keeping track of responses. It also means everything stays organised, which can be especially helpful while timelines remain uncertain.

For many drivers, the biggest benefit is simply having someone guide the steps and reduce the stress. This support is often offered through free checks, with no upfront cost, and no paperwork needed at the start. That can be reassuring if you feel stuck before you have even properly begun.

If you want guidance on what to look for in a claims management company, this page is a useful reference.

Where PCP claims fit into the bigger picture

PCP is one of the most common agreement types discussed in relation to commission and pricing concerns. That is why PCP claims are such a major focus within the wider story of car finance claims.

If you want to explore the PCP route directly, this hub on PCP claims is the most relevant starting point.

If you want a wider view of the full category of support and information, you can start exploring car finance claims and relevant guides.

What can slow PCP refunds down?

Even without a regulatory pause, PCP refunds do not always move quickly. Some delays are simply down to how old the agreement is, how much information is available, and how many complaints lenders are handling at once.

Here are the most common reasons things can take longer than expected.

Missing details

This is very common, especially for older agreements. It does not stop the process, but it can add time while the lender searches for the right records and confirms the details.

Multiple agreements

If you have had several cars over the years, it can take longer to trace each agreement and work out what applies to each one. That is normal. It just adds more steps.

Address changes

A lot of people have moved since they signed their finance deal. Lenders may need extra time to match your details across older systems, especially if the agreement was taken out many years ago.

High complaint volumes

The scale of the car finance scandal means lenders are dealing with large numbers of complaints at the same time. Even straightforward cases can move more slowly when teams are working through backlogs.

Waiting for FCA updates

This is the biggest factor in 2026. Even if your complaint is well-prepared, it may still be affected by what happens next with FCA guidance and any wider redress programme.

How to protect your position while you wait

Even if you cannot speed up the pause, there are still a few simple things you can do to stay in control and protect your complaint.

Keep everything in writing

Keep all acknowledgements, reference numbers, and updates. They are your paper trail as to when you reported the problem.

Create a simple timeline

A short log can be enough. Note the date you submitted the complaint, when it was acknowledged, and any updates you receive. It makes things much easier later if you need to refer back.

Gather what you can

Don't worry about having a perfect file. A single bank statement, email confirmation or old payment reference can be used to verify dates and names of lenders.

Avoid relying on rumours

Timelines are shifting and speculation spreads quickly online. It is safer to rely on official updates, plus what your lender confirms to you in writing.

FAQs: PCP refunds and car finance claim timings in 2026

Can I still submit a car finance complaint during the pause?

Yes. You can still raise a complaint now. Most lenders will log it and send you a reference number. They may not be able to give you a full final response yet.

Does the pause apply to every complaint?

No. It mainly affects complaints linked to commission. Other complaints may still be dealt with. Leasing complaints are outside the pause, so the timeline can look different.

Do I need paperwork to start a claim?

No. You can often start with what you remember. Lenders can usually find the agreement using your name, previous address, and the vehicle registration. Original documents are not always needed.

Are PCP refunds guaranteed?

No. There is no guarantee of a refund. That is especially true while the FCA process is still being confirmed.

Could the FCA’s proposed redress programme change how refunds are paid?

Yes. It could change how lenders work out the refund, how they make decisions, and when they pay. Things should become clearer once the FCA sets out the final approach.

What is the safest first step if I am unsure?

A free eligibility check is a sensible place to start. You can do it online, even if you do not have documents.

Should I use a claims management company?

It depends on what you want help with. Some people prefer to handle it themselves. Others want support and less paperwork. If you use a claims management company, look for a free check, no upfront cost, and clear fees.

What if I cannot remember the details of the deal?

That is normal. You do not need to recall every detail. The lender’s records and the agreement terms matter most.

What if I settled my agreement years ago?

You may still be able to complain. Many drivers only found out about these issues after the wider car finance scandal became public.

If I am eligible, how long does it take to receive a refund?

It varies. It depends on the lender, the type of complaint, and what the FCA confirms next. Some cases may move quicker after May 2026, but there is no fixed timescale.

Bottom line: What to do next

The car finance scandal has led many drivers to ask a fair question: did I pay more than I should have?

If you believe your agreement involved mis-sold car finance, you may have options for a refund on car finance. The process is still developing in 2026, and the pause until May can affect when outcomes are issued for certain complaints. The FCA’s proposed redress programme may also affect how PCP refunds are delivered once decisions are finalised.

If you want a calm starting point, begin with a free car finance refund check online.

If you want support, consider a reputable claims company that offers free checks, no upfront cost, and no paperwork needed at the start.

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References:

1. The FCA consultation has concluded, and the market is awaiting the next stage - https://www.fca.org.uk/news/statements/motor-finance-compensation-scheme-consultation-progress-and-timing
2. As of January 2026, the pause is expected to remain in place until May 2026 - https://www.fca.org.uk/news/statements/pause-motor-finance-complaints-handling-lift-31-may-2026