FCA extends deadline for motor finance complaints to late-2025

The finance regulator has extended the deadline for motor finance firms to respond to complaints in its ongoing review into whether customers have been overcharged because of the use of discretionary commission arrangements (DCAs).

The Financial Conduct Authority (FCA) investigation, which began in January, saw the standard eight-week deadline for a final response to customer complaints paused.

The pause was introduced to prevent "disorderly, inconsistent and inefficient outcomes for consumers, as well as knock-on effects on firms and the market", while the FCA assessed the issue and determined the best way forward.

However, the regulator said that it has taken longer than expected to get the data needed from firms.

The FCA said on Tuesday that finance houses and dealers now have until 4 December 2025 to provide a final response to customer complaints regarding historic DCAs.

"The extended pause allows us time, if necessary, to introduce an alternative way of dealing with DCA complaints, such as a consumer redress scheme. It is too early to say if we will intervene in this way, but based on our work so far, it is more likely than when we started our review," the FCA said.

The FCA is planning to announce the findings of the investigation and next steps in May 2025.