The FCA has issued a statement and has published a web page confirming the expected extended pause to the deadline for motor finance firms providing a final response to customer complaints, regarding discretionary commission arrangements (DCAs). The date has been extended until 4th December 2025, which has been confirmed in a Policy Statement PS24/11 . The extended pause allows the FCA time, if necessary, to introduce an alternative way of dealing with DCA complaints, such as a consumer redress scheme. The FCA has accordingly updated an ‘Information for firms on motor finance complaints’ web page, and has updated its consumer-facing ‘Car finance complaints’ web page.
The FCA is planning to announce the findings of its investigation and next steps in May 2025. This will give the FCA the time needed to assess whether the FCA should allow firms to handle complaints in the usual way or introduce a different approach.
This will apply to firms which:
- have provided car finance for a customer to be able buy a motor vehicle, for example a car, van, campervan or motorbike, before 28th January 2021 (this includes hire purchase agreements, such as Personal Contract Purchases); and
- are either a lender and / or broker that has used discretionary commission arrangements.
While firms have longer to deal with DCA complaints, consumers should be aware that they can still complain to their provider and there are time limits for doing so. The FCA has also confirmed consumers have until 29th July 2026 or 15 months from the date of their final response letter from firms, to refer a DCA complaint to the Financial Ombudsman (instead of the usual 6 months). This is so consumers will not have to decide whether to refer their complaint to the Financial Ombudsman before the FCA announces next steps.