Summary
The FCA have released their latest guidance on complaints handling rules for motor finance complaints, below is on overview of PS24/18.
Why the Changes?
New Rules in January 2024: Introduced for handling complaints involving discretionary commission arrangements (DCA) between lenders and brokers.
Court of Appeal Ruling in October 2024: Declared it illegal for brokers to receive commissions from lenders without the customer’s informed consent, likely increasing complaints.
What’s Changing?
Temporary Rules for Non-DCA Complaints: Similar to DCA rules, extending the time firms have to respond to complaints until after 4 December 2025.
Extended Time for Consumers: More time to refer complaints to the Financial Ombudsman Service after receiving a final response.
Who is Affected?
Consumers: Those with motor finance agreements involving commission arrangements.
Motor Finance Providers and Brokers: Including motor dealers and professional representatives like claims management companies.
Next Steps
Implementation Date: The new rules come into force on 20 December 2024.
Ongoing Complaint Handling: Firms must continue to investigate and collect evidence for complaints, considering the Court of Appeal’s judgment.
These changes aim to ensure that complaints are handled in an orderly, consistent, and efficient manner, preventing disorderly outcomes for both consumers and firms.
PS24/18: Further temporary changes to handling rules for motor finance complaints | FCA