Motor Finance Redress Scheme Legal Challenge: Latest Update
Legal challenges are affecting when parts of the FCA motor finance redress scheme can operate. This page explains the current position and will be updated when the FCA changes its guidance.
What is the current position?
Parts of the FCA motor finance redress scheme are currently suspended because of legal challenges. Lenders are not currently required to calculate or pay compensation under the suspended parts of the scheme.
The FCA confirmed on 13 October 2026 that the Upper Tribunal will hear the legal challenges in 16–26 February 2027, with a judgment expected in the following months. Check the FCA's own updates for any further changes to the timetable.
Can I still use the redress calculator?
Yes. The calculator continues to estimate potential redress using the published PS26/3 methodology. Its result is an estimate of what redress could be under that methodology; it is not an offer and does not mean a lender must calculate or pay scheme compensation now.
Estimate potential redress under the published PS26/3 methodology.
Use the free car finance claim calculator →What should consumers do now?
- Keep your finance agreement, statements and any correspondence from your lender.
- Keep a record of any complaint already made and note the date it was submitted.
- Do not treat a calculator estimate as a confirmed entitlement or payment date.
- Check the FCA's 13 October 2026 update for the official current position.
Why has the scheme been paused?
The legal challenges concern parts of the framework governing the redress scheme. Until the challenges are resolved, the affected requirements cannot proceed on their original timetable. A court decision or further FCA guidance may change what lenders must do and when they must do it.
When will this page be updated?
We will update this page whenever the FCA changes its published guidance, the hearing timetable changes, or a judgment alters the scheme's operation. The date at the top of the page shows when the status was last reviewed.
Last updated: 19 October 2026. This guide is general information, not legal or financial advice.