Martin Lewis has urged motorists who believe they were mis-sold car finance not to delay making a complaint, even as the Financial Conduct Authority (FCA) suspends parts of its proposed compensation scheme following a legal challenge. The money-saving expert issued guidance on social media after the UK financial watchdog confirmed that compensation payouts are unlikely to begin until at least mid-2027 while the case is heard by the Upper Tribunal.
FCA Suspends Redress Scheme Amid Legal Challenges
The FCA has suspended parts of its redress scheme after legal challenges were brought by Close Brothers, FirstRand Bank and MotoNovo Finance. Hearings are scheduled for either December 2026 or February 2027. Until the legal process concludes, lenders do not need to calculate or pay compensation to customers who may be entitled to redress under the scheme.
Commenting on the latest developments on X (formerly Twitter), Martin wrote: "CAR FINANCE MISSELLING (BAD) NEWS - and help on what to do. Things have been delayed further. The Court has just said it'll only hear the legal challenges to the FCA scheme in Dec 26 or Feb 27 - far later than had been thought. So even if the challenges fail, payouts likely wouldn't start until mid-2027 at the earliest. And even then there could be appeals."
Advice for Those Who Have Already Complained
Martin said motorists who have already complained should now "sit tight." He explained that finance firms have been told they can continue processing complaints and notify customers if they do not qualify under the FCA's scheme. However, where a complaint could lead to compensation, firms have been instructed not to calculate or pay redress until the legal process has finished.
Martin added: "If you've complained. Sit tight. If you don't get a rejection now, then hopefully, if all goes to the current plan, you will be due a payout. Yet don't expect any further response otherwise. I know many find that frustrating."
Urging New Complaints
He also urged anyone who has not yet complained to do so now rather than waiting. Martin said: "If you've not complained. It's still worth getting one in now, as you will eventually get paid out quicker if you're due. Plus there will be less 'not finding your info' risk." The financial guru said there is no need to pay a claims management company to make a complaint, as free tools are available to help motorists trace old finance agreements and submit a claim.
The FCA has said that until the legal process concludes, lenders do not need to calculate or pay compensation to people who may be entitled to redress under the proposed scheme. Motorists can make a complaint themselves free of charge, with Martin directing drivers to the free guides and complaint tools available on the MoneySavingExpert website.
