Over the course of this year, Geldards has been reporting on the FCA’s decision to allow claims for ‘secret commissions’ under the now banned Discretionary Commission Arrangements. We first reported why this was alarming and followed up with the new consultation period on the matter.

On 24 September 2024, the FCA published a press release and Policy Statement 24/11 extending the temporary changes to handling rules for motor finance complaints, the reason being, ‘it has taken longer to collect and review the data than we planned. There is also relevant ongoing litigation.’

The changes to DISP Appendix 5 came into force on 26 September 2024.

The main changes are:

• An extension to the pause on the requirement for firms to provide a final response to DCA complaints within 8 weeks, giving complainants the right to go to the Financial Ombudsman, from 25 September 2024 to 4 December 2025.
• New requirements on keeping consumers informed about the pause.
• An extension to the timeframe for consumers who receive a final response on relevant complaints to decide whether to refer their complaint to the Financial Ombudsman, to 29 July 2026 (at the earliest); and
• Requirements to maintain and preserve relevant records until 11 April 2026.

This press release and Policy Statement is relevant to motor finance providers and motor finance credit brokers, including motor dealers, and these changes do not prevent consumers or their representatives from taking legal action. The ongoing judicial review, due to be heard between 15 and 17 October 2024, and the Court of Appeal cases (judgment reserved) will impact the decision the FCA ultimately makes.

The Geldards Automotive Team remains available to answer any questions or provide further clarification on how these changes may affect you.

If you have any queries regarding this article, please contact Geldards’ Automotive Team.