🚨 Earlier today, on 30 July 2024, the FCA published a consultation paper entitled ‘CP24/15 – Extending the temporary changes to handling rules for motor finance complaints’ and a press release proposing to extend the current pause to the time that firms have to respond to motor finance complaints about discretionary commission arrangements.
📆 The FCA says it proposes to set out its next steps in May 2025 (and not September 2024). By then, the FCA says it’ll have analysed: (a) the data it has collected from motor finance firms and (b) the outcome of Barclays’ judicial review of the Financial Ombudsman’s decision to uphold a DCA complaint.
✋ The proposed pause to 4 December 2025 will allow the FCA to (for example) consult on a redress scheme or ask firms to deal with motor finance complaints relating to discretionary commission models. Firms will not be required to respond to such complaints before 4 December 2025.
📝 The FCA also proposes to give consumers until the later of 29 July 2026, or 16 months from the date of their final response letter, to refer any complaint to the Financial Ombudsman Service.
👨💻 The deadline for responding to the consultation is 28 August 2024.