FCA extends time for motor finance complaints after high court ruling

The Financial Conduct Authority (FCA) has granted companies more time to address motor finance complaints in light of a significant high court ruling. As per the regulator's latest statement, businesses now have until 4 December 2025 to issue a final response to customer grievances regarding the use of non-discretionary commission models (non-DCAs).

"We have extended the time firms have to handle complaints to help prevent disorderly, inconsistent and inefficient outcomes for consumers and firms," the FCA conveyed this morning, as reported by City AM.

Earlier in January, the FCA initiated an examination into past practices involving motor finance discretionary commission models (DCAs), seeking to identify if there was "widespread misconduct" preceding their 2021 prohibition.

DCAs previously permitted brokers to modify interest rates on motor loans unlike non-DCAs. However, following an October landmark court decision, it was established that brokers are not legally allowed to accept commissions from lenders without the customer’s informed consent, irrespective of the commission type.

Last week, the Supreme Court announced its intention to review the Court of Appeal's decision involving merchant bank Close Brothers and South African bank FirstRand. "We plan to apply to formally intervene in the case to share our expertise to assist the court," the FCA revealed.

Today, the Financial Conduct Authority (FCA) announced an extension for consumers to refer a non-DCA complaint to the Financial Ombudsman, pushing the deadline from six months to 29 July 2026 or 15 months from the issue of their final response letter from the firm. Responding to feedback received during its consultation, the FCA also indicated that the expansion of complaint handling would include motor leasing.

This decision comes despite the Court of Appeal's judgement being limited to motor finance credit agreements. "Consumers also use leasing to access motor vehicles, and it is important that consumers using similar products for similar purposes are treated in the same way," the FCA commented.