The Financial Conduct Authority (FCA) has confirmed that motor leasing will be included in the commission complaints extension period
Full details of the extension are available on the FCA website
This is following a short consultation in response to the Court of Appeal rulings on 25 October. Including motor leasing is an outcome that the BVRLA called for on behalf of members.
The extension gives firms until 4 December 2025 to provide a final response to non-DCA (Discretionary Commission Agreement) complaints. Guidance on how firms should handle complaints has also been published, outlining the FCA’s expectations under Consumer Duty.
In the policy statement, the FCA has clarified its position on motor finance commission-related complaints. It has confirmed that its decision to expand the scope of its rules to include regulated motor leasing agreements, such as Personal Contract Hire (PCH), is not based on the Court of Appeal’s judgment. The FCA explicitly acknowledges that this judgment did not involve motor leasing agreements, and its inclusion of leasing agreements reflects broader policy considerations, not a legal determination.
The decision ensures consistency in handling commission-related complaints across both motor credit and leasing agreements. The FCA highlights that leasing serves the same purpose as credit—providing consumers access to vehicles, which are essential for economic and social mobility. Treating these sectors differently would undermine fair competition and consumer confidence in the market.
The FCA's decision emphasises that the freeze is not based solely on the anticipated complaint volumes, but on ensuring orderly, efficient, and fair outcomes across the motor finance sector.
It is important to note that the ruling from the Court of Appeal on 25 October remains in place so members should act accordingly. Last month, the Supreme Court granted permission for the October ruling to be appealed, with the case due to be heard by Easter 2025.
Both the complaints extension and Supreme Court appeal are matters that the BVRLA has pushed for, having been given a clear steer from members. Both mark positive developments, firstly in giving members the opportunity to manage the situation appropriately, while also getting us closer to having the long-term clarity the sector desperately needs.
Members with any queries regarding this topic should contact [email protected].
The association will continue to be engaged in the process and maintain regular touchpoints with the FCA and other trade associations. Further updates will be shared with members in due course.
