| Link(s): | FCA announces temporary complaint-handling rules relating to certain motor finance complaints (financial-ombudsman.org.uk) Ombudsman decisions (financial-ombudsman.org.uk) |
Context
The FOS has commented on the Financial Conduct Authority (FCA) announcement that it has introduced temporary complaint handling rules relating to certain motor finance complaints, where a discretionary commission arrangement was in place.
Key points to note and next actions
The FOS comments that businesses will have more time to issue final responses to complaints from consumers while the FCA assesses how these cases are being handled, so it can decide whether further action is needed.
Abby Thomas, Chief Executive and Chief Ombudsman, said: “When people take out a car loan it’s imperative they are treated fairly and the financial implications are totally transparent.
Unfortunately, that is not always the case. We’ve heard from more than 10,000 people who fear they were charged too much for their finance, and we know many more are waiting in the wings.
We’ve resolved two complaints where we found that the way the commission arrangement between the lender and the car dealer worked was unfair on the consumer. Our decisions could signal the way forward for many more similar complaints that have not been resolved between firms and consumers.”
The FOS welcomes the FCA’s decision to assess the issue further and asks anyone with concerns about their car loans that remain unhappy with how firms have responded, to use its free, independent service and it will investigate their complaint.