FCA extends car finance complaints deadline as lenders scramble
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The City watchdog has extended the deadline for motor finance lenders to respond to complaints regarding historic commissions on car loans. The Financial Conduct Authority (FCA) has granted motor finance companies until 4 December 2025 to offer a final response to non-DCA complaints, just as it has done with complaints concerning DCAs.
It comes around two months after the Court of Appeal decided that it was unlawful for a lender to pay vehicle sellers a commission on finance deals if the car buyer had not given their 'fully informed consent' to the payment. Following the verdict, lenders expected to receive a massive volume of complaints from borrowers seeking compensation.
As a result, the FCA said it was necessary to lengthen the time firms have to handle complaints to stop 'disorderly, inconsistent and inefficient outcomes' for consumers and businesses. Many analysts believe the car finance sector could end up paying tens of billions in damages to motorists who took out loans to purchase vehicles.
Extension: The FCA has granted motor finance companies until 4 December 2025 to offer a final response to non-DCA complaints, just as it has done with complaints concerning DCAs. One senior FCA lawyer, Stephen Braviner Roman, recently suggested the total figure could surpass the estimated £50billion British banks paid to settle payment protection insurance claims.
