Welcome to the first Director’s Update on your new client portal. From now on, this is where you’ll find my monthly update, alongside the live status of each of your claims. Thank you for logging in and confirming your details.

Where things stand with the FCA scheme

The FCA’s motor finance compensation scheme remains partially suspended while four legal challenges against it go before the Upper Tribunal. The Tribunal has set two possible hearing windows: 14 to 18 December 2026, or 16 to 26 February 2027.

If the Tribunal upholds the scheme, the FCA expects compensation payments to begin in 2027. If the scheme is overturned, the FCA has said lenders may instead be required to handle complaints under the normal complaint rules. Either way, your claim with us continues, and we will keep progressing it.

What lenders are still doing

The suspension does not mean everything has stopped. Lenders are still reviewing complaints and gathering information, and they have deadlines to tell customers where they believe no compensation is owed.

1. 31 May 2026Industry-wide complaints pause ended
2. 18 November 2026Lender deadline for agreements taken out from 1 April 2014 onwards
3. 14 to 18 December 2026First possible Upper Tribunal hearing window
4. 18 January 2027Lender deadline for agreements taken out before 1 April 2014
5. 16 to 26 February 2027Second possible Upper Tribunal hearing window
6. 2027Compensation payments expected to begin, if the scheme is upheld

If a lender says no compensation is owed on one of your agreements, please don’t be alarmed. It does not automatically mean the end of the road. We review every lender decision we receive, update your portal, and explain what it means and what your options are.

Complaints outside the scheme

Since the complaints pause ended, complaints that fall outside the scheme are being handled under the normal complaint rules, which give lenders eight weeks to respond. This includes some claims following the Supreme Court’s ruling in Johnson v FirstRand. We are now receiving responses from a number of lenders, and our team reviews each one as it comes in.

What compensation might look like

The FCA estimates average compensation of around £829 per qualifying agreement. That is an average, not a guarantee. Some agreements will receive more, some less, and some nothing at all, and the final figures could change depending on the outcome of the legal challenge.

Stay alert to scams

We are still hearing from clients who have been contacted by people pretending to be us, or claiming to work with us. Please watch out for:

• Callers claiming to work with Law Room “in the background” and asking you to re-verify your details
• Calls from numbers that look almost identical to ours
• Texts with links asking you to confirm your details or claim a payment
• Anyone promising a cheque or payment “this week”. We never pay compensation by cheque
• Anyone asking for a fee to release your compensation

Now that the portal is live, please be wary of fake portal links too. We only ever send portal invitations by email. If anyone calls or texts you with a portal link, it isn’t us.

The only ways we contact you

Email

clients@lawroomclaims.co.uk

Phone

0161 710 1977

If in doubt, hang up and email us to check. If you think you may have shared details with a scammer, contact your bank straight away and report it to Action Fraud at actionfraud.police.uk or on 0300 123 2040.

Please stay with one firm

If another firm contacts you offering to take on your claim, please ignore them. Signing with a second firm creates a duplicate flag with your lender, which can pause your claim. We are already acting for you, and there is nothing further you need to sign.

Keep your details up to date

If you move house or change your phone number or email address, you can update this yourself in the portal at any time. It’s the simplest way to make sure news about your claim reaches you.

What’s next

Your portal will be updated as your claims progress, and I’ll be back with my next update in October.

Thank you for your continued trust in Law Room.