The Financial Ombudsman Service has now received more than 20,000 complaints from consumers who think they paid too much for motor finance.
The body has contacted consumers and businesses to provide them with an update on motor finance commission complaints.
In January 2024, it published its first, representative, final decisions fully addressing the arguments we’ve received across a range of motor finance complaints.
The Financial Conduct Authority (FCA) subsequently announced a review of the historical use of motor finance discretionary commission arrangements (DCA) and paused the requirement for firms to issue final responses in some DCA cases.
In March, three court cases relating to car finance commission were granted permission to go to the Court of Appeal, and in April, Clydesdale Financial Services – trading as Barclays Partner Finance – started judicial review proceedings in relation to one of its decisions.
IT said these could have an impact on its approach to similar issues which meant it was unlikely to be able to issue final decisions on affected cases “for some time.”
Deputy chief ombudsman, James Dipple-Johnstone, said: “We have heard from more than 20,000 people with concerns that they were charged too much for their finance.
“It is disappointing that ongoing legal proceedings around motor finance commission have impacted our ability to issue final decisions in some of these cases.
“However, we’re determined to progress consumers’ complaints as far as we can, and firms should continue to investigate and respond to complaints promptly.”
