FCA Motor Finance Scheme partially suspended; If scheme upheld, sees payments to begin in 2027; Hearing 14-18th Dec 2026 or 16-26 Feb 2027

Upper tribunal ordered partial suspension of motor finance scheme on terms agreed with challengers. - - Firms keep preparing and progress complaints as far as possible while avoiding work that may need repeating. - - Firms must identify relevant complaints and agreements gather data on commissions and disclosures respond to complainants not owed compensation by scheme deadlines with limited exceptions and cooperate with others. - - Firms not required to calculate or pay redress until tribunal process concludes. - - consumers not owed compensation will be told by deadlines such as 18 Nov 2026 or 18 Jan 2027 depending on agreement date. - - If scheme upheld payments expected to begin 2027 if overturned may shift to individual complaints process. - - **Link: - **Insight: FCA’s UK motor-finance redress scheme is already subject to legal challenges after the regulator confirmed final rules in March 2026 to compensate customers treated unfairly over historic commission disclosure.

A partial suspension would matter because it could delay or reduce near-term redress costs for lenders and car-finance providers, while prolonging uncertainty for consumers and balance sheets. - - The FCA has said firms should keep preparing despite the challenge, with adequate time to prepare complaint responses by mid-November 2026. - - Recent context: the scheme has reportedly faced challenges from consumer and lender groups including Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance, and compensation payments may slip into 2027 if litigation disrupts the rules. - - Upcoming date: mid-November 2026 is the key FCA-referenced preparation point for complaint responses if the scheme proceeds.