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. Editor's note (October 2026): the FCA's planning assumption at the time was a Tribunal decision in mid-November 2026. The hearing has since been fixed for 16 to 26 February 2027. See our October 2026 update.
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.
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 delay does not reduce what is owed; it moves the date on which lenders are expected to begin paying.