Consumer Panel urges FCA to limit delay on complaints handling and reconsider deadline for FOS referrals

The Financial Services Consumer Panel has urged the FCA not to extend the pause on motor vehicle finance complaints beyond the currently proposed 31 July 2026.

The Panel considers that an extension to the pause for some motor finance complaints is appropriate – while it does not in principle seek any further delay in handling such complaints, it agrees that it would be unhelpful if firms are required to begin processing the complaints before the FCA has finalised its proposed MVF redress scheme. The Panel welcomes the FCA’s suggest to end the pause sooner if appropriate.

However, the Panel disagrees with the FCA’s proposals not to align the time period for consumers to refer complaints to the FOS following the receipt of a final response letter to the 15 months previously offered. It is concerned that some consumers
will be time-barred from referring to FOS before they are able to properly understand how any MVF redress scheme and, critically, whether they have grounds to take their complaint to the FOS.