What happened. On 2 July 2026, the FCA confirmed that the Upper Tribunal has partially suspended its motor finance consumer redress scheme, after a legal challenge by four parties: Consumer Voice (represented by Courmacs Legal), Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance.
What the pause actually means. While the challenge runs, firms are not required to calculate or pay redress, or send you communications about compensation owed, in line with the original timetable. But they *must still tell complainants who are not owed* anything — so some people will still get an answer.
When it's back. The Tribunal will hear the case on 14–18 December 2026 or 16–26 February 2027 (final dates depend on evidence applications). A judgment is expected in the months after. If the scheme is upheld with no appeal, payments could begin in 2027. If it's overturned in whole or part, the FCA may have to consult on a revised scheme — pushing redress to 2028 or later.
What to do now. Nothing about the pause stops you complaining. It's still worth getting your complaint in with your lender (free), and escalating to the Financial Ombudsman Service (free) if you're unhappy. You don't need a claims company.
FAQ.
- Will I still get paid? If you're eligible and the scheme survives the challenge — likely from 2027. Nothing is guaranteed while it's paused.
- Should I wait? No need to wait to complain; the pause affects payout timing, not your right to raise a complaint.
Full explainer: Motor finance mis-selling, made simple