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UK Financial Conduct Authority publishes policy statement on further temporary changes to handling rules for motor finance complaints
December 19, 2024The U.K. Financial Conduct Authority has published a policy statement on further temporary changes to handling rules for motor finance complaints. The FCA has extended the time motor finance firms have to respond to motor finance complaints not involving a discretionary commission arrangement. Firms now have until after December 4, 2025, to provide a final response to such complaints received on or after October 26, 2024. Consumers who receive a final response to these complaints have until the later of either 15 months from when the final response is sent, or July 29, 2026, to decide whether to refer their complaint to the Financial Ombudsman Service. The rules broadly mirror those for motor finance DCA commission complaints, which were made in January and subsequently extended in September.
The FCA consulted on the changes in November and respondents broadly agreed with the proposals. However, in response to feedback received, the FCA has confirmed that the complaint handling extension will cover motor leasing, as well as motor finance credit agreements. The amendments to DISP are set out in the Dispute Resolution: Complaints Sourcebook (Motor Finance Non-Discretionary Commission Arrangement Complaints) Instrument 2024 (FCA 2024/45) and come into force on December 20, 2024. To assist firms in communicating with motor finance customers about commission, the FCA has also published a webpage, setting out the FCA's expectations under the Consumer Duty with examples of good and poor practice.
The U.K. Financial Ombudsman Service has also updated its webpage to reflect the FCA's policy statement.
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