Martin Lewis, the renowned financial expert and founder of MoneySavingExpert, has provided an important update for car owners awaiting compensation for car finance mis-selling issues. The Financial Conduct Authority (FCA) has adjusted its timeline, indicating that drivers may experience a longer wait for potential compensation. The FCA is expected to disclose their findings from the investigation in Spring next year, with companies having until the end of 2025 to address complaints. This could mean that some car owners might face delays in resolutions for up to 15 months.
Initially, the FCA was set to deliver its verdict this Autumn, but the decision was postponed over the summer months. Martin Lewis shared on social media, “Motor finance misselling update: @TheFCA just announced while it’ll announce its ruling in May 2025, firms will have until December 2025 to deal with complaints.” Martin has previously highlighted that affected motorists could potentially receive substantial compensation if they were impacted by improper discretionary commission models between 2007 and 2021. He advises those who believe they are affected to contact the relevant authorities.
The FCA has emphasised the extensive scale of its ongoing investigation, which involves reviewing records spanning 14 years. The recent update from the FCA states that they intend to outline their next steps in the review into discretionary commission arrangements in May 2025. They aim to have analyzed the collected data from firms and considered the outcome of a judicial review related to a complaint involving Barclays by that time. The FCA is contemplating potential actions such as consulting on a redress scheme and has decided to pause complaint handling until December 2025 to allow sufficient time for firms to implement any proposed schemes.
According to the Express, as reported by Nottinghamshire Live, the FCA has acknowledged the growing likelihood of a consumer redress scheme, which is now considered more probable than at the commencement of the review. The FCA’s approach indicates a cautious step towards resolving the issue effectively while ensuring that affected consumers receive fair compensation.Affected car owners are encouraged to stay informed about further developments and should reach out to relevant institutions if they believe they have been impacted by car finance mis-selling.