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Thu, 02 Jul 2026

Thu, 02 Jul 2026 Car finance compensation payments delayed until next year

Millions could be entitled to compensation as a result of commission arrangements between lenders and dealers.

* Millions of drivers who were mis-sold car finance agreements will have to wait until at least 2027 to receive compensation.
* Average payments of around £829 per person are expected, with a total cost of up to £9.1 billion.
* The delay is due to legal challenges to the scheme, which has put plans for compensation on hold.
* Customers who took out car loans between April 2007 and November 2024 may be eligible for compensation.
* The Financial Conduct Authority (FCA) estimates that around 12 million car loans are affected by the mis-selling scandal.
* The FCA's central compensation scheme allows people to complain and potentially receive compensation without needing a lawyer or going to court.
* However, complaints have already been made about four million finance agreements, and those people do not need to do anything.
* Lenders will respond to claims, explaining if customers are owed compensation and how much, but the timing of these letters is uncertain due to the legal challenge.
* Drivers who complained by 30 June and are not owed compensation should be told by 18 November, while those who complained by 31 August will be told if they are not owed compensation by 18 January 2027.