The short version
If you had car finance (PCP or HP) between April 2007 and November 2024, you could be owed compensation if the dealer's commission wasn't properly explained. The FCA's compensation scheme is law, but parts of it are suspended while legal challenges are heard, so payments are on hold.
What's changed since the summer
- 2 July 2026: the Upper Tribunal suspended parts of the scheme. Lenders don't have to calculate or pay compensation under it until the challenges are decided.
- Hearing dates: 14 to 18 December 2026, or 16 to 26 February 2027, depending on whether the parties ask for more expert evidence.
- Who's challenging: Volkswagen Financial Services, Mercedes-Benz Financial Services, Crédit Agricole Auto Finance and Consumer Voice.
- Who isn't: Lloyds (Black Horse), Santander and Close Brothers all said in April 2026 that they wouldn't challenge the scheme.
What it means for you
Nothing is lost by the delay. The FCA says the best thing to do if you're concerned is to complain to your lender, and people who've already complained are included in the scheme automatically. Complaints that fall outside the scheme are being handled normally.
If you'd rather not deal with lenders yourself, Consultation Claims can find all your agreements and complain to each lender for you.
Read more
Sources
Checked on 7 October 2026 against:
You don't have to use a claims management company. You can complain to your lender, and then to the Financial Ombudsman Service, for free.