On 8 May 2026 the Financial Conduct Authority confirmed that its mandatory motor finance Consumer Redress Scheme is now the subject of four separate legal challenges before the Upper Tribunal. The challenges have been brought by Consumer Voice together with three lenders: Mercedes-Benz Financial Services, Volkswagen Financial Services and Crédit Agricole Auto Finance.
What the FCA has said
In a statement published on the same day, the FCA defended the scheme as proportionate and consistent with the Supreme Court's August 2025 judgment. It instructed lenders to continue preparing as if the scheme will go ahead, but on the basis that the earliest point at which lenders are expected to begin making compensation offers is now mid-November 2026.
The original implementation deadlines (30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014 agreements) are effectively suspended pending the Tribunal's decision.
What this means for your claim
If you have already complained, your lender must still log and acknowledge your complaint. They are not, however, required to issue a final response or compensation offer until the Tribunal has ruled.
If you have not yet complained, you can still do so at any time up to 31 August 2027. That deadline may be extended once the Tribunal outcome is known.
Why this matters
The scheme covers an estimated 12.1 million agreements and is expected to deliver £7.5 billion in total redress, with an average payout of £829 per agreement. A short delay does not reduce what is owed; it simply moves the date on which lenders are expected to begin paying.