The Financial Conduct Authority has issued final rules in PS25/18 further extending the period firms have to issue final responses to in-scope motor finance complaints involving discretionary commission arrangements (DCAs) and non-DCA commission complaints, while carving out complaints about regulated consumer hire (leasing) agreements. The further extension for non-leasing complaints will now end on 31 May 2026, earlier than consulted, and leasing complaints will return to the usual DISP complaint-handling deadlines from 5 December 2025. The package also requires firms to update published consumer-facing complaints information to reflect the revised time limits and, for new in-scope complaints received from 5 December 2025, to acknowledge complaints and explain the extension (including directing consumers to the FCA’s car finance information page). For Financial Ombudsman Service referrals, final responses sent on or after 30 January 2026 will revert to the usual six-month referral period, while earlier final responses continue to benefit from the temporary extended referral periods set in existing rules. Record-keeping is adjusted so the extension period does not count towards the standard three-year complaint-record retention requirement, and lenders and credit brokers must preserve potentially relevant records for existing or future DCA and non-DCA commission complaints until 11 April 2031. The rules take effect from 5 December 2025 and sit alongside the FCA’s ongoing consultation on a potential motor finance consumer redress scheme, which closes on 12 December 2025. The FCA expects to announce in February or March 2026 whether it will proceed with a scheme, and any scheme operational timetable would supersede the 31 May 2026 end date for complaints that must be assessed under the scheme.
Financial Conduct Authority 2025-12-03
Financial Conduct Authority extends motor finance complaints handling pause to 31 May 2026 and ends it for leasing agreements
The Financial Conduct Authority (FCA) has issued final rules in PS25/18, extending the period for firms to issue final responses to motor finance complaints involving discretionary commission arrangements and non-DCA commission complaints, excluding regulated consumer hire agreements. The extension for non-leasing complaints ends on 31 May 2026, while leasing complaints revert to standard deadlines from 5 December 2025. Firms must update consumer-facing complaints information, and record-keeping requirements now exclude the extension period from the standard three-year retention requirement.