The Short Answer
As of June 2026, there is no fixed answer. The FCA confirmed an industry-wide car finance redress scheme on 30 March 2026 (Policy Statement PS26/3), but the scheme is under legal challenge, and the FCA has said this will delay payouts. Once you accept an offer, the lender must pay within one month. Timescales are otherwise uncertain.
In short: the wait depends on which route applies to your agreement (the FCA scheme or a direct complaint to your lender), on whether the outstanding legal challenge to the scheme succeeds, and on the volume of cases firms are handling. Below we explain each route stage by stage and what realistically affects the timeline.
The 2025 Supreme Court ruling and the FCA redress scheme
On 1 August 2025 the Supreme Court handed down its judgment in the linked appeals Hopcraft, Johnson and Wrench ([2025] UKSC 33). The court mostly sided with the lenders. It held that car dealers acting as credit brokers are generally not in a fiduciary relationship with customers, and it dismissed the bribery and secret-commission/fiduciary claims, overturning the October 2024 Court of Appeal decision. It upheld only Mr Johnson's narrower "unfair relationship" claim under section 140A of the Consumer Credit Act 1974.
This means there are no automatic, blanket payouts and the ruling did not confirm that all car finance was mis-sold. Instead, redress is being delivered through a scheme run by the Financial Conduct Authority (FCA).
The FCA confirmed that scheme in Policy Statement PS26/3 on 30 March 2026 (FCA, 2026). Key points:
- It is industry-wide and free to take part in.
- It covers car, van, motorbike and campervan hire purchase (HP) and personal contract purchase (PCP) agreements taken out between 6 April 2007 and 1 November 2024 where commission was paid (the rules differ for agreements before and after 1 April 2014).
- It covers discretionary commission arrangements (DCAs), high-commission arrangements and undisclosed ties — not DCA cases only.
- The FCA estimates around 37% of agreements are eligible — roughly 12.1 million agreements.
- Where a complaint is upheld, the FCA estimates average redress of about £830 per agreement (£829 in PS26/3). This is an FCA average across qualifying agreements only — it varies widely, around 1 in 3 awards are capped, and some people will receive nothing. It is not a typical or guaranteed individual payout.
- The FCA expects firms to pay around £7.5bn in redress (roughly £9.1bn including administration costs) (FCA, 2026).
Important status (June 2026): the scheme is under legal challenge (filed around 1 May 2026), with an Upper Tribunal hearing unlikely before October 2026. The FCA has said this challenge will delay payouts. For that reason, no one can promise that payouts are happening now or give you a firm deadline.
How long does each route take?
There are two broad routes to redress, and they run on very different timetables. The FCA scheme is designed to be the main route for most eligible agreements; a direct complaint or court action may apply in other cases.
The table below contrasts the two. All durations are indicative only and, for the scheme, depend on the outcome of the legal challenge.
| Stage | Who acts | Typical duration |
|---|---|---|
| FCA redress scheme route | ||
| Scheme rules finalised and firms set up systems | FCA and lenders | Confirmed 30 Mar 2026 (PS26/3); roll-out paused pending legal challenge |
| Legal challenge to the scheme resolved | Upper Tribunal | Hearing unlikely before Oct 2026; payouts delayed until resolved |
| Lender reviews your eligible agreement | Lender | To be confirmed once the scheme runs; not yet under way |
| You receive and consider an offer | You | Your decision — take your time to check the offer is fair |
| Payment after you accept an offer | Lender | Within 1 month of acceptance |
| Direct complaint / litigation route | ||
| Submit a complaint to your lender | You (or a representative) | A few minutes to a few weeks to prepare |
| Lender investigates and issues a final response | Lender | Up to 8 weeks under FCA rules |
| Escalate to the Financial Ombudsman Service (FOS) if unresolved | You / FOS | Several months, depending on FOS caseload |
| Court action (rare; for unfair-relationship-type claims) | Courts | Many months to years; only suitable in limited cases |
Two timing rules are worth highlighting:
- The one-month-after-acceptance rule. Under the FCA scheme, once you accept an offer the lender must pay you within one month.
- The legal-challenge delay. Because the scheme is being challenged, the FCA has said payouts will be delayed. Until the challenge is resolved (a hearing is not expected before October 2026), there is no reliable date for when scheme payments will start.
Who is eligible — and who is not
You may be covered by the FCA scheme if you had a car, van, motorbike or campervan HP or PCP agreement taken out between 6 April 2007 and 1 November 2024 on which commission was paid. Agreements that have been paid off, settled or that belonged to someone who has since died are still eligible (FCA, 2026).
Note that the relevant eligibility window runs to 1 November 2024. The widely cited date of 28 January 2024 was the start of the FCA's temporary pause on complaint handling — it is not the eligibility cut-off. DCAs themselves were banned by the FCA on 28 January 2021, but the scheme reaches to 1 November 2024 and also covers non-DCA commission.
Agreements that are not covered include:
- Personal contract hire (PCH) / lease agreements
- 0% finance deals
- Agreements with very small commission
- Deals in the lowest 5% of APRs
- Cases already decided by the Financial Ombudsman Service or a court
If you are unsure which route applies to you, our guide on what documents you need explains what helps to check your agreement.
What affects how long your claim takes?
Factors that can speed things up
- Having your documents ready — your finance agreement, lender name and approximate dates make it quicker to confirm eligibility.
- Responding promptly to any requests for information.
- A straightforward agreement — clear, single agreements are simpler to assess than multiple or unusual commission structures.
Factors that slow things down
- The legal challenge to the scheme — the single biggest factor right now; the FCA has confirmed it will delay payouts.
- Missing documentation — if records have to be requested before a complaint can be assessed, this adds time.
- Complex cases — multiple agreements, unusual commission structures or disputed facts.
- Lender and FOS backlogs — high volumes of motor finance complaints have lengthened waiting times.
Important things to know before you claim
- You can complain directly to your lender for free. You do not need a claims management company or solicitor to take part in the FCA scheme or to make a complaint. Going direct costs nothing.
- Nothing is guaranteed. Eligibility, whether a complaint is upheld and any amount paid all depend on the facts of your agreement. The £830 figure is an FCA average per qualifying agreement, not a sum you are promised.
- Timescales are uncertain. Because the scheme is under legal challenge, no firm can honestly give you a payout date.
- If you use a claims company, fees apply. Fees are banded by the amount recovered, up to a maximum of 36% including VAT (15%–30% plus VAT), in line with FCA rules. Going direct avoids these fees entirely.
What to expect in terms of communication
If you do choose to use a representative, you should expect to be kept informed at each stage:
- Confirmation when your details are submitted.
- Updates at significant milestones.
- Notification of any outcome or offer made.
- Advice on whether an offer is fair before you accept.
You can contact our team at any time if you want an update.
Start the process
The fairest summary in June 2026 is this: the FCA scheme exists, but its timetable has been disrupted by a legal challenge, so no one can promise a quick payout. Remember you can complain to your lender for free without using a claims company, and that any redress depends on the facts of your agreement and is not guaranteed.
If you would like help understanding whether your agreement may be eligible, submit your details and we can explain your options. You can also visit our how it works page for a step-by-step overview, or get in touch with any questions about timing.
