FCA Extends Investigation into Motor Finance Complaints to May 2025

The Financial Conduct Authority (FCA) has announced a significant extension of its investigation into motor finance complaints involving discretionary commission arrangements (DCAs). Originally slated for completion by September 2024, the review will now continue until May 2025. This decision is driven by the complexity of data analysis and ongoing legal proceedings related to Barclays Partner Finance.

Key Points of the Extension

New Deadline: The FCA plans to wrap up the review by May 2025. This extension allows for thorough analysis of the collected data and consideration of the outcomes from the Barclays judicial review.

Complaint Handling: The pause on the standard 8-week deadline for firms to respond to DCA complaints is extended until December 2025. During this time, the FCA will not require firms to adhere strictly to the usual complaint handling timelines.

Potential Outcomes: Depending on the review's findings, the FCA may implement a consumer redress scheme or allow the resumption of normal complaint handling processes.

Consumer Guidance: Consumers are still encouraged to file complaints during this period. The deadline for referring complaints to the Financial Ombudsman Service has also been extended accordingly.

The FCA's commitment to ensuring fair treatment and transparency in the motor finance sector underscores the importance of this extended review period. For more detailed information, you can read the FCA’s official update here.

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This extension reflects the FCA's dedication to thoroughly addressing and resolving consumer complaints in the motor finance sector, aiming to ensure fair outcomes for all involved parties. For more updates, keep an eye on the FCA news page and their statements section.

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