Millions of drivers mis-sold car finance must wait until 2027 as legal challenges push back £9.1bn payout scheme

From the Newshound archive · first published 13 October 2026 · last updated 14 October 2026.

Compensation for around 12 million mis-sold car finance agreements has been delayed until at least next year after the Upper Tribunal confirmed it will hear legal challenges to the FCA's £9.1bn redress scheme between 16 and 26 February 2027. The FCA expects average payouts of £829 per agreement, but lenders Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance are contesting the scheme's lawfulness. Consumer Voice, the only challenger arguing that drivers could receive TOO LITTLE, has also secured a hearing date after accusing the FCA of designing the scheme to minimise costs to lenders. A judgment is expected only in the months after the hearing, meaning uncertainty could stretch deep into 2027.

The scheme covers loans taken out between April 2007 and November 2024, with dealers secretly charging customers higher interest rates to pocket bigger commissions.

Consumer Voice co-founder Alex Neill accused the FCA of letting lenders delay the case, saying: 'The FCA and lender applicants blame each other for the delay.'

The FCA has warned lenders to prepare for the possibility that the tribunal could quash the scheme entirely, leaving drivers to pursue complaints through standard statutory channels.