THE deadline to claim compensation over dodgy car finance deals has been extended into next year.
The Financial Conduct Authority (FCA) is carrying out an investigation into shady sales practices which saw millions of Brits potentially overpaying on their motors.
The probe was set to conclude in September of this year, but the watchdog has now announced that it won’t finalise its report until May 2025.
When the investigation began, the FCA suspended the requirement for lenders to issue a final response to a complaint within eight weeks until after its conclusion were released.
Given the setback, this means that lenders will now not have to issue a final response to complaints until December 4 2025 “at the earliest”.
According to the FCA, the delay has been in large part due to the fact that lenders have “struggled to supply the data we need within the requested time”.
This, combined with a pending court case reviewing a particular complaint, has left investigators unable to complete their work by the initial deadline.
However, it does also mean that motorists have more time to submit complaints, with the deadline to appeal your lender’s response through the Financial Ombudsman set back.
Brits will now be able to take their case to the Ombudsman until July 29 2026 or up to 15 months after their final response is dated, whichever comes later.
The body is expected to announce a sizeable compensation package at the end of the investigation, with affected drivers potentially due “billions” in compensation.
Announcing the delay, the FCA said: “We’re proposing to extend the current pause to the time firms have to respond to consumers about motor finance complaints involving a discretionary commission arrangement.
“We now intend to set out next steps in our review into the past use of DCAs in May 2025.
“Firms involved in our review have engaged with us constructively, but many have struggled to supply the data we need within the requested time.
“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.
“Our next steps could involve consulting on a redress scheme.”
This is a developing story, please continue to check back for more information on how and when to claim
