- The FCA says the extension will help prevent disorderly, inconsistent and inefficient outcomes for consumers and firms.
THE FCA has extended the time firms have to respond to complaints about motor finance agreements not involving a discretionary commission arrangement (DCA). Firms now have until after 04 December 2025 to provide a final response to non-DCAs, in line with the extension already provided for complaints involving DCAs.
The extension follows the judgment of the Court of Appeal on 25 October 2024 in three motor finance cases.
In that case, the Court decided it was unlawful for the car dealers to receive a commission from lenders providing motor finance without first telling the customer about the commission and getting their informed consent to the payment. The focus of the Court of Appeal decision was common law, equitable principles and the Consumer Credit Act, rather than FCA rules.
Firms who provide motor finance are likely to receive a high volume of complaints in response to the judgment, said the FCA, hence the extension.
Writing on LinkedIn, BVRLA Director of Corporate Affairs and soon to be CEO, said:
“Some positive pre-Christmas news for the vehicle leasing sector. Motor leasing will be included in the commission complaints extension period announced by the FCA today. Well done to Thomas McLennan, Shashi Maharaj and all the BVRLA members and participants in our working group that helped us argue for this timely intervention from the regulator.”
On 11 December 2024, the Supreme Court confirmed it would hear an appeal against the Court of Appeal’s judgment.
While the Supreme Court will hear an appeal, firms must still comply with the law as it stands when arranging new motor finance agreements. To assist firms, we have set out a summary of the Court of Appeal decision, our expectations and some good and poor practice examples.
