The Financial Conduct Authority (FCA) has increased the time companies have to address complaints over historic motor finance deals that do not involve non-discretionary commission payments.
Firms have until 4 December 2025 to respond to such complaints, which the FCA noted was in line with a deadline for those involving non-discretionary commission agreements.
An October ruling saw the Court of Appeal decide that such hidden payments between lenders and car finance sellers were illegal.
This had opened the door for motor finance firms to be ordered to pay billions extra in compensation, with an FCA investigation having solely focussed on non-discretionary arrangements.
“Firms who provide motor finance are likely to receive a high volume of complaints in response to the judgment,” the financial watchdog said in a statement.
Britain’s Supreme Court has since agreed to hear appeals against the October ruling, put forward by the likes of Close Brothers (F:CBRO) Group PLC (LSE:CBG), but having a knock-on effect for lenders such as Lloyds Banking Group PLC (LSE:LON:LLOY).
“We have extended the time firms have to handle complaints to help prevent disorderly, inconsistent and inefficient outcomes for consumers and firms,” the FCA added.