UK watchdog extends motor finance complaints deadline to Dec. 2025

LONDON (Reuters) – Britain’s Financial Conduct Authority has given lenders until Dec. 4, 2025 to respond to customers complaining about historic motor finance deals that included non-discretionary commission payments, the regulator said on Thursday.

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The FCA is considering an industry-wide compensation scheme which analysts say could run into billions of pounds, after London’s Court of Appeal ruled in October that it was unlawful for car dealers to receive commissions from banks without a customer’s informed consent.

The Supreme Court granted permission to appeal that ruling earlier this month, with a final judgment due next year.

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The FCA said on Thursday it would apply to formally intervene in the case to share its expertise with the court.

The FCA also said consumers will have until July 29, 2026 or 15 months from the date of their final response letter from the relevant lender or broker, to refer unsatisfactory responses on non-discretionary commissions to the Financial Ombudsman.

Consumers typically have a deadline of six months to make such referrals.

The deadlines published on Thursday bring the treatment of non-discretionary commissions complaints in line with the extension already provided for deals involving discretionary arrangements.

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Following feedback received during our consultation, the FCA said the complaint handling extension will cover motor leasing, as well as motor finance credit agreements, potentially expanding the number of impacted customers even further.

“The Court of Appeal’s judgment did not involve motor leasing agreements. However, consumers also use leasing to access motor vehicles, and it is important that consumers using similar products for similar purposes are treated in the same way,” the regulator said.

(Reporting By Sinead Cruise, editing by Karin Strohecker)