Car Finance Compensation Dates: 2026–2027 Timeline
Check FCA car finance compensation dates, the February–March 2027 hearing and what the partial suspension means for your complaint.
Key Takeaways
- The legal challenge hearing is scheduled for 16 February to 3 March 2027; this is not a payout date.
- Parts of the scheme remain suspended, though lenders must continue work required by the rules still in force.
- You can complain directly to your lender for free; payment timing depends on the legal outcome and your case.
The next confirmed court milestone is 16 February to 3 March 2027. The FCA confirmed those hearing dates in its 26 October update. Parts of the car finance compensation scheme remain suspended, and a hearing date is not a payout date.
Key dates for the car finance compensation scheme
30 March 2026: the scheme was introduced
The FCA introduced its motor finance redress scheme through PS26/3. Earlier forecasts that final rules would arrive in February are no longer the relevant timetable.
31 May 2026: the complaint-handling pause expired
The old pause ended, but that did not make every complaint immediately payable. Complaints wholly outside the scheme should follow the usual process. Scheme complaints are affected by the later partial suspension.
2 July 2026: the FCA explained the partial suspension
The FCA's suspension statement explains that lenders must continue preparing, but do not currently have to calculate or pay scheme compensation while the legal process continues.
16 February to 3 March 2027: the legal challenge hearing
These are the hearing dates confirmed on 26 October, replacing the earlier December-or-February possibilities. The FCA expects a judgment in the months after the hearing. The outcome and any appeal will affect what happens next.
When might my lender contact me?
Some customers may receive a decision that no compensation is owed before the legal challenge ends. The FCA's consumer guidance gives these dates:
- 18 November 2026: for agreements starting on or after 1 April 2014, where the complaint was made by 30 June 2026.
- 18 January 2027: for agreements starting before 1 April 2014, where the complaint was made by 31 August 2026.
These deadlines have exceptions for complaints considered out of time and certain contractual-tie cases. Later complainants who are not owed compensation should generally hear within five months. Receiving no letter does not prove that compensation is due. Check the lender's response for your individual review and referral deadlines.
When will car finance compensation be paid?
The FCA expects payments to begin in 2027 if the scheme is upheld and the judgment is not appealed. This is conditional, not a guaranteed payment window for an individual complaint. An illustrative refund calculation cannot confirm eligibility or when a lender will pay.
What can I do while I wait?
If you have concerns and have not complained, you can complain directly to your lender for free. Keep your agreement details, correspondence and proof of submission together. Our complaint letter generator can help prepare a document for you to review and send; check pricing before using the optional service.
Already complained? Keep your contact details current and follow any instructions in your lender's letters. You do not need to send a duplicate complaint simply because the timetable has changed.
The Car Finance Refund Team
Published by The Car Finance Refund Team. Check the article's sources and current lender or FCA guidance before acting on information about your agreement.
Disclaimer: This content is for informational purposes only and does not constitute legal or financial advice.
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