Huge car finance compensation update as key deadline for claims extended and you could be owed £1,000s
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LENDERS have been told by the City watchdog they now have until December 4 next year to respond to borrowers complaining about motor finance deals with hidden commission payments. The Financial Conduct Authority (FCA) said it follows a London Court of Appeal ruling in October that it was unlawful for car dealers to receive commission on motor finance from lenders without a customer’s informed consent.
![[The deadline has been extended]](https://www.thesun.co.uk/wp-content/uploads/2024/12/businesswoman-driving-home-pick-up-958118992.jpg?strip=all&w=960)
It said the extension regarding non-discretionary commission payments was in line with the extension it provided for complaints involving discretionary commission agreements. The FCA said: “Firms who provide motor finance are likely to receive a high volume of complaints in response to the judgment.
“We have extended the time firms have to handle complaints to help prevent disorderly, inconsistent and inefficient outcomes for consumers and firms.”. Close Brothers was granted permission earlier this month by the UK’s highest court to appeal against the landmark ruling on motor finance commission.
The Supreme Court said the banking group could challenge the earlier judgment in the Court of Appeal. It marked the latest development in the looming crisis facing the motor finance industry, with major lenders on the hook for potentially billions of pounds’ worth of compensation.
The October court decision opened the door for a potentially fresh wave of complaints from consumers who think they may have been mis-sold car finance in previous years. On the Supreme Court appeal, the FCA said it planned to apply to “formally intervene in the case to share our expertise to assist the Court”.
