On 19 December 2024, the Financial Conduct Authority (FCA) published Policy Statement 24/18 ‘Further temporary changes to handling rules for motor finance complaints’ (PS24/18). PS24/18 follows the FCA’s earlier consultation, CP24/22.
In PS24/18 the FCA publishes rules in the Dispute Resolution: Complaints (DISP) sourcebook of the FCA Handbook for motor finance non-discretionary commission arrangement (DCA) commission complaints. The FCA rules broadly mirror the existing rules for motor finance DCA commission complaints, which the regulator made in January 2024 (PS24/1) and subsequently extended in September 2024 (PS24/11).
Among other things, the rules:
- Extend the time firms have to provide a final response to such complaints until after 4 December 2025.
- Give consumers who receive a final response to these complaints until the later of: (i) 15 months from when the final response is sent, or (ii) 29 July 2026 to decide whether to refer their complaint to the Financial Ombudsman Service.
- Require firms to maintain and preserve relevant records.
Next steps
The rules described in PS24/18 will come into force on 20 December 2024. The rules mean firms do not have to provide final responses to motor finance non-DCA commission complaints received on or after 26 October 2024 until after 4 December 2025.
Firms must still progress motor finance non-DCA commission complaints in line with the DISP rules. This includes continuing to investigate and collect evidence to help with the eventual resolution of these complaints, taking into account all relevant factors (including the Court of Appeal’s judgment).