2026 Compensation Scheme Countdown (Every Key Date You Need to Know)

Happy New Year! As we enter 2026, the long-awaited car finance compensation scheme is finally taking shape. After years of investigation and months of consultation, the Financial Conduct Authority (FCA) is preparing to launch an industry-wide redress programme. Here are the key dates and milestones you need to know.

The Timeline

January 29, 2026 (FOS Referral Deadline Shift)

For any final response letters sent by lenders after this date, you will have the standard 6 months to escalate your complaint to the Financial Ombudsman Service (FOS) if you're unhappy with the outcome. This marks a return to normal timelines after extended deadlines were in place during the FCA's review period.

February or March 2026 (FCA Final Rules Expected)

According to MoneySavingExpert, the FCA has indicated it will publish final rules for the consumer redress scheme during this period. This will confirm:

• The exact formula for calculating refunds.
• Eligibility criteria (currently proposed for agreements between April 6, 2007, and November 1, 2024).
• Timelines for lenders to proactively contact affected customers.

May 31, 2026 (The Pause Lifts)

This is the big one. As confirmed in the FCA's Policy Statement PS25/18, the temporary pause on firms issuing final responses to most motor finance complaints ends on this date. After May 31st:

• Lenders must start sending final response letters.
• They typically have 8 weeks to resolve complaints once the pause is lifted (subject to the final rules).
• If the scheme is launched, lenders will also begin proactively contacting customers who may be eligible but haven't complained.

July 29, 2026 (Extended FOS Deadline)

For complaints where a final response was received between June 21, 2024, and January 29, 2026, you have an extended deadline to refer to the FOS. This gives consumers plenty of time to consider their lender's response before deciding to escalate.

How Much Could You Get?

The FCA estimates an average payout of approximately £829 per agreement under its final redress scheme (PS26/3). However, this is an average. Individual payouts will depend on:

• The size of your original loan.
• The interest rate you paid vs. the base rate.
• The length of your agreement.

With approximately 12.1 million agreements eligible, the FCA estimates £7.5 billion in consumer redress at expected uptake, and £9.1 billion in total industry costs.

What Should You Do Now?

1. Submit Your Complaint: If you haven't already, get your complaint on file. Lenders will process claims on a first-come, first-served basis.
2. Gather Your Documents: Find your original finance agreement or reference numbers. This speeds up the process.
3. Avoid CMCs: You can claim for free. Don't give away 25-30% of your refund.

Summary

2026 is the year the money starts to flow. The groundwork has been laid, and the regulator is moving towards a structured payout. Stay patient, stay informed, and make sure your claim is in the queue.