FCA moves to stabilise motor-finance complaint timeline, as consumer claims soar

The FCA is seeking to prevent "disorderly, inconsistent and inefficient outcomes for consumers and firms" by extending the deadlines for making and handling claims in the motor finance sector.

By Neasa MacErlean

The regulator predicts "a high volume of complaints" to firms after a Court of Appeal judgment in October found in favour of the consumer in cases involving non-discretionary commission arrangements (NDCA). Case numbers were already high in the DCA (discretionary commission arrangements) sector, and the Financial Ombudsman Service has seen motor finance complaints jump 2.5 times, to more than 11,800 in the past year.