The UK’s Financial Conduct Authority (FCA) has granted companies additional time to address complaints regarding motor finance agreements that do not involve a discretionary commission arrangement (DCA).
The new deadline to provide a final response to non-DCA-related complaints is now set at 4 December 2025.
This aligns with the previously granted extension for DCA-related complaints.
The extension comes as a result of a Court of Appeal judgment on 25 October 2024, which found that it was unlawful for car dealers to receive commissions from lenders without disclosing this to the customer and obtaining their informed consent.
The Court’s focus was on common law, equitable principles, and the Consumer Credit Act, rather than on FCA regulations.
Due to the judgment, firms offering motor finance are anticipated to face a significant increase in the volume of complaints.
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In response, the FCA has prolonged the complaint-handling period to avert “disorderly, inconsistent and inefficient” consequences for both consumers and companies.
The decision is aimed at ensuring that entities have adequate time to process the expected surge in complaints and consumers’ grievances are addressed in a fair and orderly manner.
In a statement, the FCA said: “On 11 December 2024, the Supreme Court confirmed it would hear an appeal against the Court of Appeal’s judgment.
“We previously wrote to the Court asking it to decide quickly whether it will give permission to appeal and, if it does, to determine the substantive appeal as soon as possible.
“We plan to apply to formally intervene in the case to share our expertise to assist the Court. While the Supreme Court will hear an appeal, firms must still comply with the law as it stands when arranging new motor finance agreements.”
