FCA Update For Motor Finance Firms On Financial Resources And Complaints Handling

While their full investigation into discretionary commission arrangements (DCA) is ongoing, with the next steps expected by the 24^th September, the FCA has given further guidance on what they expect from the sector.

Financially

Firms are advised to undertake an analysis of their individual financial circumstances and plan for any additional operational costs from increased complaints and, where applicable, to meet the costs of resolving those complaints.

Operationally

The FCA’s expectations include that motor finance firms should:

• Continue to investigate complaints they receive involving a DCA.
• Consider the Information Commissioner’s Office guidance on responding to data subject access requests.
• Notify the FCA if they are involved in any litigation relating to motor finance commissions.

This latest update indicates that while the FCA has put a pause on fully handling commission complaints, they are still expecting activity regarding these complaints to continue behind the scenes in preparation for the conclusions of their investigation. 

At EQ, we have spoken to many clients who are treating this as a separate exercise as well as those who are adding it to BAU operations. Our range of services and solutions, including specialist additional resources, capacity planning consultancy, and dedicated complaint-handling technology, can help your business manage this cost-effectively and efficiently.