Martin Lewis has issued an update on the £9.1 billion UK car finance compensation scheme as a new court date has been set.
The UK’s financial regulator has announced that legal challenges to the scheme will be heard in February 2027.
Lenders Volkswagen Financial Services, Mercedes Benz Financial Services, and Credit Agricole Auto Finance are challenging the Financial Conduct Authority’s (FCA) plans to compensate drivers who were mis-sold a loan between 2007 and 2024.
A challenge will also be heard from consumer rights organisation Consumer Voice.
An estimated 12.1 million agreements are eligible for redress, at an average of £829 per payout, under the FCA’s scheme.
“They had a choice between December and February. They've gone for February, unfortunately, which will delay it even more. Firms must process complaints now, though, but they needn't pay out. It's still on hold until after that,” Mr Lewis announced on his ITV show on Tuesday (13 October).
