Every Car Finance Claimant Waits Longer for an Average £830 as FCA Hearing Slips

• The full court hearing on the FCA’s car finance compensation scheme now runs from 16 to 26 February 2027, after the earlier December 2026 slot was dropped.
• Lenders do not have to calculate or pay redress until the legal challenges end, with a judgement possible by mid-April 2027 and payments in 2028 or later if the scheme is overturned.
• The FCA expects the average payout to be about £830 per agreement, and drivers can still complain to their lender directly and for free.

Payouts Are Pushed Into 2027 at the Earliest, and a Defeat for the FCA Could Mean 2028 or Later

What the New Hearing Date Means for Your Money

Millions of drivers who were sold car finance between 2007 and 2024 were told to expect payouts this year. That promise has slipped again. MoneySavingExpert reported on 13 October 2026 that the full legal challenge to the Financial Conduct Authority’s car finance redress scheme will be heard from 16 to 26 February 2027.

The court had offered two windows. One was 14 December 2026. That one has gone. The case management hearing on 5 and 6 October settled the timetable, along with the documents and expert evidence each side can use. Martin Lewis, the founder and chair of MoneySavingExpert, called February “the later of the two date options, so even more delay.”

A judgement will not arrive on the final day of the hearing. MoneySavingExpert says it is expected in the months afterwards, possibly by mid-April 2027. Until the court rules, lenders do not have to work out or pay compensation under the scheme. Think of it as a queue that cannot move until a single decision is handed down.

The original plan looked very different. Payouts were meant to begin in July 2026. Four challenges changed that. For a driver who first complained about hidden commission years ago, another six to nine months is a long stretch.

Who Is Challenging the Scheme and Why

Four separate challenges sit behind the delay. Three come from lenders: CA Auto Finance, Mercedes-Benz Financial Services and Volkswagen Financial Services. The fourth comes from Consumer Voice, an organisation that wants drivers to receive more, not less.

That split is worth noting. The lenders want the scheme cut back or quashed. Consumer Voice wants the payouts raised. The court has to handle both pushes at once, and the FCA has said it will defend the scheme. On 2 July 2026 the Upper Tribunal suspended parts of it, which is why lenders are no longer required to calculate or pay compensation for now. They still have to follow the rules that were not suspended.

The outcomes are not equal. If the scheme is upheld and nobody appeals, the FCA still expects payments to begin in 2027. If it is overturned in full or in part, the regulator has to decide what to do next. A revised scheme could draw a fresh challenge, and MoneySavingExpert says that could push compensation to 2028 or later.

Nikhil Rathi, the FCA’s chief executive, said when the scheme was confirmed: “We’ve listened to feedback to make sure the scheme is fair for consumers and proportionate for firms.” Whether the court agrees is the question that now sits until February.

The Numbers Behind the Scheme

The FCA’s own figures show the scale. The scheme covers 12.1 million agreements, made between 6 April 2007 and 1 November 2024. The regulator puts total redress at £7.5 billion, a figure that rests on its estimate that 75% of eligible consumers will make a claim. The average payout works out at about £830 per agreement.

Do the sum on full take-up and the bill is larger. Multiply 12.1 million agreements by £830 and the total comes to roughly £10 billion. The gap between that figure and £7.5 billion is the 25% of people the FCA expects will never claim.

An average hides a wide spread. The FCA has said compensation will be capped in around 1 in 3 cases. Your own figure depends on your agreement, the commission your lender or broker took, and what you were told about it. The £830 is a midpoint for the whole pool and not a promise for any single car.

One more date sits in the FCA’s timetable and still stands. Anyone who is not contacted by their lender can make a claim until 31 August 2027. That deadline now falls only a few months after the earliest likely judgement, so the margin is thin.

The Dates Your Lender Must Hit Before Then

The court delay does not freeze everything. Lenders still have to deal with complaints, and MoneySavingExpert sets out the dates by which a lender should tell you if it believes you are owed nothing.

If your agreement started on or after 1 April 2014 and you complained by 30 June 2026, the lender should reply by 18 November 2026. If your agreement started before 1 April 2014 and you complained by 31 August 2026, the date is 18 January 2027. For complaints made after those cut-offs, the usual rule is a reply within five months of the lender receiving it.

These dates come with exceptions. They do not apply where the lender decides your complaint was made too late, or where your complaint touches an issue that is part of the ongoing legal challenge. MoneySavingExpert says that if you hear nothing, you are likely but not certainly eligible.

If a lender tells you no and you disagree, you can ask it to review that decision. If you are still unhappy, you can refer the case to the free Financial Ombudsman Service, or take a court claim. Keep every letter and email, and note the date each one arrived.

What to Do While You Wait

The FCA’s advice has not changed. Its press release states: “The best thing consumers can do, if they have concerns, is to complain to their lender.” It is free. You do not need a claims management company or a law firm, and the regulator warns that using one could cost you more than 30% of any money you receive. Do not sign up with several firms at once, as you could be charged more than one fee. MoneySavingExpert offers a free DIY Car Finance Reclaim tool that walks you through the complaint.

Complaining early still helps. The FCA says that complaining before the relevant implementation period ends means faster compensation, and MoneySavingExpert says doing it yourself will likely mean a quicker payout. The implementation periods closed on 30 June 2026 for loans from 1 April 2014 and 31 August 2026 for earlier loans. Complaints made now are still worth making, and the 31 August 2027 backstop applies to anyone who is never contacted.

A new option is on the horizon. The FCA is talking to lenders about “full and final” settlement offers for people who want money sooner. Offers are optional for lenders, and the FCA expects them to line up with the scheme’s average of £830 per unfair agreement. You do not have to accept one. MoneySavingExpert has not heard of any lender making an offer yet, and the FCA has not published full details of how the process would work.

Before you accept anything, check the sum against your own case. A flat offer near the average could be less than your agreement is worth if your commission was high, and more than it is worth if your loan was small. Ask the lender to show how it reached the number, and keep your paperwork from the time of the sale: the finance agreement, the settlement figures and any emails with the dealer.

Watch for scams while the scheme is on pause. The FCA warns that you should never pay a fee to access compensation. The real route to compensation is free.

For drivers who have already complained, the plan is simple: wait for the lender’s reply, keep your records, and mark 18 November and 18 January in the diary if those dates apply to you. For drivers who have not complained, the FCA and MoneySavingExpert both point to the same first step, and it costs nothing.

Earlier coverage of how the scheme was first pushed back is here: FCA Pushes £7.5 Billion Car Finance Payout Back to 2027 for Millions.

Sources:

• MoneySavingExpert: Car finance mass redress legal challenge court date
• FCA: Millions of car finance customers to get payouts this year as FCA goes ahead with compensation scheme