The Financial Conduct Authority (FCA) published its policy statement PS23/6 on 30th March 2026 confirming final rules for an industry - wide redress scheme, covering certain motor finance agreements, to compensate customers who were treated unfairly.
If you took out finance to buy a vehicle between 6th April 2007 and 1st November 2024 and your agreement involved a commission arrangement, you may be entitled to compensation under this scheme.
Under the proposed scheme there would be a set up period so lenders can prepare:
If you took out your agreement between 6 April 2007 and 31 March 2014, the scheme would start on 31 August 2026
If you took out your agreement from 1 April 2014 to 1 November 2024, the scheme would start on 30 June 2026
On 2 July 2026, the FCA announced that the motor finance scheme has been partially suspended while legal challenges are being considered.
The legal challenges will be heard on 14 to 18 December 2026 or 16 to 26 February 2027 and until the legal process concludes, lenders do not need to calculate or pay compensation to people owed money under the scheme.
In the meantime, lenders will need to tell you if you have complained and are not owed compensation under the scheme, unless an exception applies.
If you submitted a complaint by the dates below and are not entitled to compensation under the scheme, your lender should update you by:
18 November 2026 if your finance agreement started on or after 1 April 2014 and you complained by 30 June 2026.
18 January 2027 if your finance agreement started before 1 April 2014 and you complained by 31 August 2026.
If you make a complaint after these dates and are not entitled to compensation, your lender should respond within five months of receiving your complaint.
You can read more about what this means for your complaint in the FCA’s Factsheet.