11:58 am, October 13, 2026
Customers waiting for compensation from the £9.1bn car finance scandal face further delays after a court hearing over the controversial redress scheme was pushed back to February.
The Upper Tribunal will hear legal challenges against the Financial Conduct Authority’s plans between February 16 and 26, 2027.
The regulator had previously indicated that the case could be heard as early as December, but the latest timetable means uncertainty surrounding the scheme will now stretch into next year.
Volkswagen Financial Services, Mercedes-Benz Financial Services and Credit Agricole Auto Finance are challenging the FCA’s redress plans, alongside consumer advocacy group Consumer Voice.
The scheme is intended to compensate motorists who were unfairly treated when taking out motor finance agreements between 2007 and 2024.
The FCA estimates around 12.1m agreements could be eligible for compensation, with an average payout of £829.
It has put the total cost of redress at around £9.1bn.
However, parts of the scheme have been paused while the legal challenges are dealt with, leaving affected customers facing a longer wait for compensation.
Despite the uncertainty, the FCA has told lenders they must continue preparing for the scheme and take complaints as far through the process as they currently can.
At the same time, it has warned firms to prepare for the possibility that its plans could be struck down altogether.
The regulator said firms should plan for a scenario in which ‘there may be no motor finance compensation scheme and no complaint handling pause’ if the scheme is quashed by the tribunal.
Consumer Voice, which is mounting its own challenge to the FCA’s proposals, criticised the latest delay.
Alex Neill, co-founder of the organisation, said: ‘Consumer Voice is ready to take our challenge to trial with a potential hearing date listed for December 2026, which has now had to be abandoned. The final hearing is now listed to take place in February 2027.
‘The FCA and lender applicants blame each other for the delay.
‘The FCA’s approach to disclosure has been heavily criticised by all parties whilst the FCA blames the lenders’ requests for extensive disclosure of underlying data and reliance upon fresh expert evidence as the cause of the trial being pushed into next year.’