UK Regulator Extends Deadline for Car Finance Complaints to December 2025
The FCA widened the scope to include car leasing complaints following a court ruling on undisclosed commissions, with potential compensation costs projected to reach £30 billion.
- The Financial Conduct Authority (FCA) has extended the deadline for lenders to respond to car finance complaints to December 4, 2025, covering both discretionary and non-discretionary commission arrangements.
- The extension follows an October Court of Appeal ruling that deemed it unlawful for lenders to pay undisclosed commissions to car dealers without obtaining customers’ informed consent.
- The FCA has expanded the complaints process to include car leasing agreements, even though leasing was not part of the original court judgment, to ensure consistent consumer protections.
- The Supreme Court has granted permission for an appeal against the Court of Appeal ruling, with a decision expected by summer or autumn 2025, but firms must comply with current laws in the meantime.
- The potential compensation bill for mis-sold car finance could rival the £50 billion payout from the payment protection insurance scandal, with smaller lenders facing significant financial risks.
BBC 
