Information for firms affected by our review into the historical use of discretionary commission arrangements (DCAs) in the motor finance industry.
Update 21 November 2024: We previously extended the time firms have to send customers final responses for motor finance complaints involving a discretionary commission arrangement (DCA). On 21 November, we published proposals[1] to extend the time firms have to deal with motor finance complaints where non-discretionary commission was involved.
The main changes we’re proposing are:
- Giving you longer to provide a final response to complaints (we’re proposing to extend the 8-week deadline until either 31 May 2025 or 4 December 2025).
- Consumers who receive a final response to such complaints will have until the later of either 15 months from when the final response is sent or 29 July 2026 to refer their complaint to the Financial Ombudsman Service.
- Firms will have to maintain and preserve records relevant to the handling of motor finance complaints or civil claims for non-DCA commission.
Where you have previously rejected complaints because they didn’t involve a discretionary commission arrangement, we would expect you to allow consumers to make a new complaint about commission.
Where you can identify that commission is not a relevant consideration, then you should treat these complaints as you normally would and make reasonable efforts to provide a final response within 8 weeks.
You should use the additional time provided to make sure you have the resources to investigate and issue final responses to complaints at the end of the proposed extension. You should also consider whether to make any financial provisions.