Timeline

The FLA confirms it will not challenge the FCA’s motor finance redress scheme, prioritising timely consumer compensation and market clarity and finality.

FCA confirms its intent for any redress scheme to have a streamlined consumer journey and to be smoother for firms to operate.

FCA confirms that it will lift the pause on the handling of motor finance complaints on 31st May 2026, two months earlier than previously proposed.

Feedback to FCA due on whether to extend the complaint handling rules.

FCA confirms it will consult.

Supreme Court hears the appeal.

The FLA applies to intervene in the Supreme Court case, expected to take place 1-3 April.

FCA decides to broaden the pause to include non-DCA and PCH motor finance complaints.

Deadline for respondent firms to apply for permission to appeal to the Supreme Court.

Joint call for input published on reform of the FOS.

FCA announces intention to consult on extending motor finance complaints handling pause to non-DCA claims.

The FCA extends the pause to December 2025, saying “We will set out next steps in our review into the past use of DCAs in May 2025. By then, we expect to have completed our analysis and assessed the outcome of the Barclays judicial review and other relevant cases in the Court of Appeal”.

FOS consultation proposes to charge CMCs £250 to lodge a case with them, reduced to £75 if the case is decided in favour of the customer. FOS proposes to charge lenders £475 per case. The FLA objects – it’s basically unfair to expect lenders to pay more per case than a CMC when the lender is not at fault.

The Financial Conduct Authority intervenes, pausing the final response deadlines on discretionary commissions complaints handling for 37 weeks to explore how to resolve the situation

The FLA welcomes the pause saying that it would ultimately provide certainty for firms and customers after a period where speculative and unfounded complaints issued by Claims Management Companies have congested what should be a smooth, prompt and clear process.

The FOS issues final decisions on commission disclosure to two lenders, with far reaching consequences on redress.

FCA launches Claims Management Companies fee cap to prevent customers handing over a large proportion of any redress they are awarded.

Extensive FLA discussions with the regulator and Treasury to address the problem of CMCs abusing the existing ADR system and increasing costs for lenders without bearing any financial risk themselves.

FCA consultation paper CP 19/28 on motor finance discretionary commission models and consumer credit commission disclosure – paras 3.30 and 3.31 confirm that the FCA decided not to require disclosure of the commission amount as they didn’t think it would have a significant impact on consumer behaviour.

Post PPI, Claims Management Companies (CMCs) begin focusing on consumer credit – in the motor finance sector, alleging affordability and/or unfair relationships.

FCA becomes the regulator for consumer credit and CONC rules enacted requiring disclosure of the existence of commission, and the amount on request, consistent with previous OFT guidance issued in March 2010 and updated in February 2011.