The Upper Tribunal has set 16 to 26 February 2027 for hearings in the $9.1 billion motor finance compensation delay, keeping the redress dispute over mis-sold finance and hidden commissions in place while the FCA scheme remains partially suspended.
Motorists waiting for compensation now face a longer hold. The hearing date pushes the legal fight into 2027, and lawyers said a ruling is unlikely before spring, with payouts potentially slipping to 2028.
Upper Tribunal February 2027
The hearing window runs from 16 to 26 February 2027, giving the tribunal time to hear twin challenges to the scheme. One challenge involves Volkswagen Financial Services, Mercedes Benz Financial Services and Crédit Agricole Auto Finance. Consumer Voice is part of the challenge and is represented by Courmacs Legal.
The dispute sits around the FCA's motor finance redress scheme, which covers compensation for mis-sold finance and hidden commissions. The FCA said its scheme is the quickest, fairest and most efficient way to compensate consumers and will defend it robustly.
Kevin Durkin HD Law
Kevin Durkin, solicitor-advocate and director of HD Law, said: "Drivers are quite rightly fed up with waiting. We’ve seen a 311% rise in claims compared with the same time last year, reflecting the growing appetite among consumers to pursue the compensation they believe they are owed".
He also said: "Based on our experience successfully representing consumers through the court system, we believe that more than 45% of claims will still need to be pursued through litigation, even if the FCA scheme comes into force, whenever that may be."
That leaves many motorists in a split position. The FCA is still telling lenders to plan for the possibility that there may be no motor finance compensation scheme and no complaint handling pause if parts of it are quashed, while also saying firms must be ready to resolve complaints through the usual complaint-handling process and within the usual statutory timescales.
Consumer Voice challenge
Alex Neill, co-founder of Consumer Voice, said: "We remain resolute and confident in our challenge, the only one made on behalf of millions of consumers who are being short-changed by the redress scheme." She also said the group wants to get on with the case and urged against any further delay.
For consumers, the practical effect is simple: the route to payment is still tied to the tribunal timetable rather than a quick payout process. If the scheme is delayed or quashed, lenders are already being told to be ready to handle complaints through the normal system.
