FCA extends car finance complaints investigation
The Financial Conduct Authority is giving car finance companies more time to respond to customer complaints around commissions charged when buying car.
It launched an investigation into discretionary commission arrangement (DCAs) in January and was expected to announce its review and next steps in September.
However, it has now pushed back the deadline for finance companies to respond until December and said it will publish its findings next May.
This is because motor finance companies have struggled to provide it with the required information.
Car finance complaints
The FCA said:
“Firms involved in our review have engaged with us constructively, but many have struggled to supply the data we need within the requested time. Reasons for this include firms not keeping older data, and data being stored on multiple systems, or being spread between lenders and brokers. While we now have the necessary data, the delays mean we will not be able to set out next steps by the end of September 2024 as expected.”
The FCA is seeking to establish if finance companies have overcharged customers on commission rates.
Customers are still able to lodge a complaint to the Financial Ombudsman while the investigation is ongoing, with the deadline for complaints now extended from six months after their final response letter from the company to 15 months.
