PS25/18: Changes to handling rules for motor finance complaints   

Read PS25/18 (PDF)[1]

What we're changing

From 5 December 2025, firms must start sending final responses to complaints about leasing agreements, as these agreements are excluded from any potential consumer redress scheme.  

For all other motor finance commission complaints, we're extending the time firms have to send a final response. This is so firms will not have to start sending final responses before we’ve decided whether the redress scheme will go ahead, and which complaints will be covered if it does. 

We've decided to end the complaint handling extension on 31 May 2026, rather than 31 July 2026 as consulted on. This will help ensure that consumers do not wait any longer than necessary for a complaint response if we decide not to go ahead with a scheme, or if we implement a scheme with a more limited scope.

If we go ahead with a scheme, we will look to align with any dates in the scheme. But we will not bring forward the 31 May 2026 deadline.  

We're also reverting to the usual 6 months that consumers have to refer a complaint to the Financial Ombudsman Service, for final responses sent after 29 January 2026.

Who this is for

The rules in this policy statement are directly relevant to:  

• Consumers who have taken out motor finance agreements.
• Consumers who have taken out motor finance leasing agreements.
• Motor finance providers, including those who provide leasing agreements.
• Motor finance credit brokers, including motor dealers.
• Professional representatives bringing complaints to motor finance providers, including claims management companies (CMCs) regulated by the FCA.

This Policy Statement will also interest consumer organisations and trade bodies representing the motor finance and professional representative sectors.  

Next steps 

Firms should now apply the rules outlined in this policy statement.

Our consultation on the potential consumer redress scheme[2] closes on 12 December 2025. We will announce whether we will go ahead with a redress scheme by the end of March 2026.    

Background

In October 2025 we published our consultation paper on a proposed motor finance consumer redress scheme (CP25/27) for motor finance customers who were treated unfairly.

In Chapter 11 of CP25/27, we consulted on changes to the handling rules for motor finance complaints. This aspect of the consultation closed on 4 November 2025. This was to allow us time to finalise any changes and give firms notice of them before the current extension in the rules for handling motor finance complaints ended on 4 December 2025.