This post was originally published on fca.org.uk
The challenge is due to be heard between 16 to 26 February 2027, with a judgment expected in the following months. Until the legal process concludes, lenders do not need to calculate or pay compensation under the scheme.
If you have complained, your lender may tell you if you are not owed compensation. However, some consumers may not be told until the legal process concludes, so not receiving a letter does not necessarily mean you are owed compensation.
If you are concerned about your car finance agreement and have not yet complained, you can complain directly to your lender for free. Our claims page explains how and provides lenders’ contact details.
You do not need to use a law firm or claims management company (CMC), which may charge up to 36% of any compensation. Don’t sign up with more than one CMC or law firm as you may be charged multiple fees.
If you want to cancel an agreement with a CMC or law firm, you may be asked to pay a fee. That fee must be reasonable and reflect the work done. Most car finance claims are still at an early stage, so check any fee demand carefully.
We and other regulators have seen poor practice from some CMCs and law firms. If you are concerned about how they have handled your claim, you should complain directly to the firm. We have created a template letter (DOC) to help.