The FCA has extended the pause to the deadline for motor finance firms to provide a final response to customer complaints regarding discretionary commission arrangements (DCAs) until 4 December 2025. On 11 January 2024, the FCA announced a review into whether motor finance customers have been overcharged because of the past use of DCAs. The FCA also paused the 8-week deadline for a final response to relevant customer complaints. The FCA introduced the pause to prevent disorderly, inconsistent and inefficient outcomes for consumers, as well as knock-on effects on firms and the market, while it assessed the issue and determined the best way forward. On 30 July 2024, the FCA consulted on a proposal to extend the DCA complaint handling pause. This was because it had taken the FCA longer than expected to get the data it needed from firms. Barclays Partner Finance has also launched a judicial review of the Financial Ombudsman Service’s decision to uphold a complaint relating to its use of a DCA. The judicial review will consider legal issues highly relevant to our work. The hearing will take place in October. The FCA will set out next steps in its review into the past use of DCAs in May 2025. By then, the FCA expects to have completed its analysis and assessed the outcome of the Barclays judicial review and other relevant cases in the Court of Appeal. The extended pause allows the FCA time, if necessary, to introduce an alternative way of dealing with DCA complaints, such as a consumer redress scheme. It is too early to say if the FCA will intervene in this way, but based on its work so far, it is more likely than when the FCA started its review. While firms have longer to deal with DCA complaints, consumers should be aware you can still complain to your provider and there are time limits for doing so. Check if the FCA's work applies to you and how to complain. The FCA has also confirmed consumers have until the later of 29 July 2026 or 15 months from the date of their final response letter from the firm, to refer a DCA complaint to the Financial Ombudsman (instead of the usual 6 months). This is so consumers will not have to decide whether to refer their complaint to the Financial Ombudsman before the FCA announce next steps.Making a complaint
