Get Ahead of the Curve: Preparing for the FCA's Motor Finance Complaints Deadline in 2025

Following on from the FCA’s recent updates, there is a proposed extension of the standing pause that firms have been given, to respond to consumers on their Motor Finance complaints. This deadline would be pushed back until the end of 2025.

So what does this mean for firms?

The FCA now intends to set out next steps to their review in May 2025, expecting firms to have adequately handled all Motor Finance Complaints by Dec 2025. The FCA have stated the announcement in May could either confirm redress handling schemes, or they may end the complaints handling pause early. Either way, firms should have started their review, and for those wanting to offset this level of regulatory uncertainty, now is the perfect time to get a head start on the work to be done.  

The motor finance sector is experiencing significant scrutiny, with a sharp focus on fair treatment of customers and resolving complaints effectively. The Financial Conduct Authority (FCA) is holding firms to higher standards of accountability, particularly in areas such as affordability assessments, commission structures, and ensuring customers fully understand their agreements.

Effective complaints remediation is not just about addressing issues retroactively; it's about building trust and ensuring fairness is embedded in every step of the customer journey. Firms must prioritise transparency, clear communication, and proactive identification of potential mis-selling or unfair practices.

For motor finance firms, staying ahead of these regulatory expectations means having robust processes in place, training staff on compliance, and continuously monitoring and improving complaint handling.

Delta Capita has experience in supporting a number of clients through Motor Finance remediation, and we can provide the right team to support your regulatory needs. We also have a number of tools, such as Karbon outreach; that will streamline your processes through digitising the customer outreach journey through a SaaS solution. Get in touch to find out more or book a demo.

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