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FCA Brings Forward End of Motor Finance Complaints Pause to May 2026

The regulator advanced the timetable to accelerate outcomes for consumers pending its decision on a sector-wide redress scheme.

Overview

  • From 5 December 2025, firms must send final responses to leasing complaints, which are excluded from any potential scheme.
  • The complaint-handling extension now ends on 31 May 2026, two months earlier than the date previously proposed.
  • Firms have been instructed to preserve relevant records until 11 April 2031 to support oversight and any redress process.
  • The consultation on the proposed scheme closes on 12 December 2025 with a go‑or‑no‑go decision due by the end of March 2026, and the usual six‑month Ombudsman referral window resumes for final responses sent after 29 January 2026.
  • The FCA proposal includes a 35% commission threshold with roughly 14.2 million agreements potentially eligible, following an August Supreme Court ruling that found a 55% commission unfair.