Research shows consumers want the choice, rather than wait for the legal challenges to conclude.
Almost 9 out of 10 (89%) car finance customers who have complained or are considering doing so want the choice of an offer of compensation now, rather than waiting for the legal challenges to the FCA's compensation scheme to conclude. 86% would be comfortable making the decision, and 61% say they’d accept an offer in line with the scheme.
Timing matters for many: 77% say receiving compensation sooner would make a great deal or fair amount of difference to their financial situation.
The survey findings are being released today alongside the FCA's expectations for lenders[2] who want to make settlement offers to those owed compensation under its scheme, while legal challenges continue. This comes as Barclays Partner Finance confirms it will make settlement offers to some of its customers owed compensation.
The regulator supports lenders making settlement offers, as long as customers are offered no less than they would receive through the scheme.
Lenders will need to be clear with people about what accepting any offer means. This includes that they will keep any money received, even if the outcome of the legal challenges means they would have received less. However, they also wouldn’t be able to claim more later if the outcome of the legal challenge means they would have been paid more. As consumers can reject an offer and leave their claim to be dealt with under the scheme, these offers can’t be referred to the Financial Ombudsman Service for review.
Stephen Braviner Roman, the FCA’s general counsel and co-lead on the motor finance project, said:
'Fair settlement offers could result in some people getting money sooner. And it’s clear they want the choice.
'Anyone who wants to wait can, and there’s no obligation to agree to the offer. We’ll closely monitor firms making offers and expect them to be clear what accepting an offer means.'
To help consumers make informed decisions, the FCA has published a factsheet (PDF)[3] that lenders must share with customers when making settlement offers. Not all lenders are likely to make offers, and those that do may only make them to some customers owed compensation. The FCA will regularly update its website with lenders making settlement offers[4] to help consumers check whether an offer is genuine. Firms are expected to notify the FCA if they plan to make offers.
Payouts under the motor finance compensation scheme were due to start this year. The scheme is currently partially suspended, pending the outcome of legal challenges due to be heard between 16 February and 3 March 2027. Under the partial suspension, firms must keep preparing for the scheme and continue progressing complaints as far as possible, but do not need to calculate or pay compensation under the scheme until the legal process concludes.
Anyone who is concerned about their car finance deal and has not yet complained should complain directly to their lender. There is information on the FCA website on how to complain for free[5]. There is no need to use a law firm or claims management company, which may charge up to 36% of any compensation, including VAT.
Notes to editors
- Research conducted by Kantar, surveying 1,000 motor finance customers online between 25 and 28 June 2026. Findings cited are based on a subset of 590 respondents who said they had made or were considering making a motor finance complaint.
- Barclays press release[6].
- Statement confirming motor finance legal challenge to be heard in February 2027[7].
- Statement on the partial suspension of the motor finance scheme[8] and what it means for firms and consumers.