On 31 May 2026, the FCA's pause on motor finance complaint handling comes to an end. The pause has been in place since January 2024, more than two years, while the FCA investigated commission arrangements and designed its redress scheme. Here is what the change means in practice.
What the pause was
When the FCA launched its formal review in January 2024, it put complaint handling on hold across the market. Lenders were required to keep investigating complaints behind the scenes but were not required to respond to customers while the review was underway. The pause was designed to prevent inconsistent outcomes before the FCA had set clear rules for how redress should be calculated.
What changes on 31 May
From 31 May 2026, lenders must begin progressing complaints. What happens next depends on whether your complaint falls within the FCA's redress scheme.
If your complaint is in scope of the scheme, it will be assessed under the scheme's rules rather than standard complaint procedures. This means the timing of any offer you receive is still linked to the outcome of the Upper Tribunal challenges, which the FCA is planning for mid-November 2026 at the earliest. The pause lifting does not change that timeline, but lenders are now required to continue preparing your case so they can move quickly once the legal challenges are resolved.
If your complaint falls outside the scheme, for example because it involves elements not covered by the redress rules, lenders generally have up to eight weeks from 31 May to send you a final response, depending on when your complaint was first received.
If you have registered a claim with us, you do not need to take any action. We will continue to manage your case and contact you when there is a material update.
A note on the Consumer Voice challenge
One of the four legal challenges to the scheme has come from Consumer Voice, a consumer rights group. Their argument is not that the scheme goes too far. It is that the FCA's approach to calculating compensation may leave some consumers with less than they are owed. If their challenge is successful, it could result in higher payouts for affected customers. We will keep you updated as this develops.
Watch out for scams
With the pause lifting and compensation now firmly in the news, the FCA has warned that fraudsters may attempt to contact motor finance customers claiming to offer compensation. If you receive an unexpected call, message or email asking for your personal details, including your name, address, date of birth or bank details, do not respond. Any legitimate communication from your lender about the scheme will come through official channels. If you are unsure whether a communication is genuine, contact your lender directly using the number on their official website.
What this means for the timeline
The pause lifting is a meaningful step forward, but most customers should not expect to receive offers before mid-November 2026, when the FCA expects the Upper Tribunal to deliver its decision on the legal challenges. There is also a possibility that proceedings extend further into 2027. We will write to you if that position changes.
What you need to do
Nothing. If you have already registered with us, your claim remains active and we are monitoring developments on your behalf. If you have not yet checked your eligibility, now is a good time. Lenders are now required to be actively processing complaints, and registering ensures your claim is in the queue.