On 2 July 2026 the Upper Tribunal made an order suspending parts of the FCA's motor finance Consumer Redress Scheme, on terms agreed between the FCA and the four parties challenging it. The FCA published a statement the same day explaining what the suspension means for firms and consumers.
What the suspension covers
Under the order, lenders are not currently required to calculate, communicate or pay compensation under the scheme timetable. The original implementation deadlines of 30 June 2026 (agreements from April 2014) and 31 August 2026 (earlier agreements) no longer apply in that form. The FCA has published a list of the scheme rules that remain in force, and firms must comply with all of them.
What lenders must still do
The FCA has been clear that the suspension is not a pause on everything. Lenders must continue their preparatory work, including identifying relevant complaints and gathering data. They must tell complainants who are not entitled to compensation, within the scheme deadlines or at most seven weeks after them. They must update complainants on when the challenge will be heard and what the suspension means. And they must plan for a scenario with no scheme at all, under which complaints would be handled on normal statutory timelines.
When the challenges will be heard
At the time of the order, the Tribunal had scheduled hearing windows of 14 to 18 December 2026 or 16 to 26 February 2027. Editor's note (October 2026): the FCA has since confirmed the hearing will take place between 16 and 26 February 2027. See our October 2026 update.
What this means for your claim
If you have already complained, your complaint remains on file and your lender must keep progressing it as far as the suspension allows. If you have registered with us, you do not need to take any action. If you have not yet complained, you can still do so at any time. The FCA expects compensation payments to begin in 2027 if the scheme is upheld and the judgment is not appealed.