A tribunal has ordered a partial pause of the UK Financial Conduct Authority’s (FCA) car finance compensation scheme following challenges from lenders and a consumer group, according to multiple reports. The decision means lenders are no longer required to calculate or pay compensation to customers covered by the scheme while legal proceedings continue. The suspension applies to parts of the programme rather than ending it completely, and the final timing of any resumption is not immediate. One report indicates the overall redress may be delayed until at least 2027, though consumers are still being advised to complain in the meantime so claims can be considered when the process restarts. The FCA’s scheme is described as a large, industry-wide mechanism with an estimated value of around £9bn, and it was previously suspended in response to an industry backlash. The tribunal’s ruling therefore shifts the focus from active compensation calculations to the ongoing legal challenge, with the duration of the pause depending on how the case develops.
Tribunal pauses parts of FCA car finance compensation scheme, delaying payouts
A tribunal has ordered a partial pause of the UK Financial Conduct Authority’s (FCA) car finance compensation scheme following challenges from lenders and a consumer group, according to multiple repor...
- A tribunal orders a partial pause of the FCA’s car finance compensation scheme.
- During the pause, lenders stop calculating and paying compensation under the scheme.
- The suspension follows legal challenges from lenders and a consumer group.
- Reports say the programme’s wider redress may be delayed until at least 2027, depending on the case outcome.
- Consumers are still encouraged to make complaints while the scheme is paused.
Lenders will no longer need to calculate or pay compensation to people owed money until a legal process concludes.
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1 month agoLenders will no longer need to calculate or pay compensation to people owed money until a legal process concludes.
1 month agoFCA programme partially suspended after challenges from lenders and consumer group
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