FCA Changes to Mis-Sold Car Finance Claim Deadlines: What You Need to Know
If you have taken out car finance in the UK and have concerns about how your agreement was arranged, it is important to be aware of recent updates from the Financial Conduct Authority (FCA). The FCA has amended the timetable for how and when lenders must respond to certain car finance complaints. These changes may affect the timing of complaint responses, but they do not determine complaint outcomes or guarantee compensation.
This guide explains what has changed and what it could mean for consumers.
Key Deadline Change: Complaint Responses From May 2026
One of the main updates announced by the FCA is that motor finance firms will be required to begin issuing final responses to relevant complaints earlier than previously planned.
- Revised deadline for final complaint responses: 31 May 2026, brought forward from 31 July 2026.
This means lenders must provide final responses to many car finance complaints, including those relating to potential mis-selling, two months earlier than originally expected. This update has been widely reported, including by Yahoo Finance UK.
The change forms part of the FCA’s wider work while it considers the introduction of a possible industry-wide redress scheme. Any such scheme would apply only if formally confirmed by the regulator and would be subject to final rules and eligibility criteria.
What This Means for Consumers
1. Complaint handling timelines are restarting
The FCA has confirmed that, from 31 May 2026, firms will be expected to handle complaints in line with standard regulatory timeframes. This includes the requirement to issue a final response within eight weeks for most complaints.
Previously, the FCA had paused complaint-handling deadlines for certain car finance complaints while it reviewed market practices. This pause meant that some consumers experienced delays in receiving responses.
2. Personal Contract Hire (PCH) complaints are treated differently
For consumers who entered into Personal Contract Hire (PCH) agreements, the pause on complaint handling has already ended. These complaints now follow normal FCA rules, with firms required to respond within eight weeks from 5 December 2025.
3. Earlier responses do not guarantee outcomes
While the revised timetable may allow complaints to be reviewed sooner, it does not affect whether a complaint will be upheld or whether any redress will be offered. Decisions will continue to depend on individual circumstances, regulatory guidance, and any future FCA decisions.
Why This Update Is Relevant to Mis-Sold Car Finance Concerns
The FCA’s review focuses on historical car finance arrangements where consumers may not have been given clear or fair information. Industry commentators have suggested that a large number of agreements could fall within the scope of the review, but no figures or compensation amounts have been confirmed by the FCA.
Situations that may raise concerns include cases where:
- Commission paid to dealers or brokers was not clearly explained
- Dealers were able to influence interest rates through discretionary commission arrangements
- Key information about how finance costs were calculated was not made clear
Whether any of these issues make an agreement unfair depends on the facts of each case and the regulatory framework applied.
What You Can Do Now
Consumers who are concerned about past car finance agreements may wish to:
- Review agreements such as PCP, HP, or similar products taken out between April 2007 and November 2024
- Consider submitting a complaint directly to the lender to ensure it is recorded
- Keep copies of finance agreements, disclosures, and any correspondence with lenders or dealers
- Stay informed about FCA updates
Submitting a complaint does not guarantee a particular outcome, but it ensures the matter is formally logged.
Acting Early and Staying Informed
Raising a complaint in good time can help ensure it is considered once complaint handling resumes under the FCA’s timetable. However, any potential redress will depend on future regulatory decisions and the assessment of individual circumstances.
Mis-Sold Expert helps consumers understand regulatory developments and how complaint processes work, without offering financial or legal advice. If you believe you may have been mis-sold car finance, you can contact Mis-Sold Expert to find out how they can help or you can use our application form.
This article is for general information only and does not constitute financial or legal advice. Complaint outcomes and any potential redress are not guaranteed and depend on individual circumstances and regulatory decisions.
You can claim without using a claims management company; you can go to your finance provider and then to FOS, for free. Additionally, the FCA is introducing a free consumer redress scheme.
