The FCA plans to extend the “pause” to the time firms have to respond to complaints about motor finance involving discretionary commission arrangements., to 4 December 2025. It says it has taken longer than expected for it to collect and review relevant data, and it is also aware of the judicial review applications Barclays Partner Finance has made in respect of a FOS decision to uphold a DCA complaint. The FCA also notes that firms have been engaging constructively with it, but many have struggled to provide the data it has asked for.
As a result, the FCA now plans to set out its next steps in May 2025 (rather than September as originally planned), and on current thinking, these steps may include consulting on a redress scheme – although the FCA is not yet certain it will do this. Because of this, it thinks it is sensible to extend the pause to December 2025 as it may take until then to confirm how to implement the FCA’s proposals. If it decides not to go ahead with a redress scheme, it will consult on ending the pause earlier.
Complainants will then have until at least 29 July 2026 to decide whether to refer their complaint to the FOS.
FCA asks for comments on the proposed extension by 28 August 2024.