Motorists waiting for car finance compensation now have another date for their diaries: February 2027. A hearing date, rather than a payment date.

The Upper Tribunal will hear challenges to the Financial Conduct Authority’s redress scheme between 16 and 26 February. Among those challenging it is Consumer Voice, represented by Courmacs Legal. Three lenders — Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance — have also brought challenges. The scheme remains partially suspended.

For an organisation campaigning on behalf of consumers, that demands an explanation. Seeking larger payouts is an attractive headline. Asking motorists to accept further delay and uncertainty is a harder proposition.

Consumer Voice argues that the scheme would undercompensate borrowers and wants the compensation calculation changed. That argument will be tested in the proceedings. But the possibility of a better outcome must be weighed against the practical consequences of pursuing it.

Those consequences are substantial. The FCA says lenders do not have to calculate or pay compensation under the scheme until the legal process concludes. Even if the scheme survives without an appeal, payments are expected to begin in 2027. A revised scheme requiring fresh consultation and facing further challenge could push compensation into 2028 or beyond.

Consumer Voice is not solely responsible for this position – the lenders’ challenges are part of the same proceedings. But calling a challenge consumer advocacy does not remove its costs for consumers.

The claims industry’s role deserves equally close scrutiny. The FCA scheme is free to use, and consumers do not need a claims management company or solicitor to participate. The regulator warns that those using representatives may lose up to 36% of their compensation in fees, with court proceedings potentially costing more. That is an industry-wide warning, rather than a statement about every firm’s charges.

A larger headline award therefore tells only part of the story. What matters to a household is the amount it receives after deductions, how long it waits and the uncertainty it bears along the way.

The FCA has already called on law firms and claims companies involved in challenging the scheme to explain the likely delay to their motor finance clients, offer them an exit from their contracts and strongly consider waiving fees. Consumers deserve that clarity before being asked to stay the course.

Consumer Voice should be judged by the same practical standard it applies to the regulator – whether its intervention leaves motorists better off.

For now, the promised improvement remains unproven. The additional wait is already here.