The Financial Conduct Authority will restart the handling of motor finance complaints on 31 May 2026, ending a pause that has been in place for almost two years.
The regulator said the new date gives it enough time to finish designing any compensation scheme while allowing lenders and brokers a reasonable period to prepare.
The pause was introduced in January 2024 after concerns that firms may not have properly disclosed commission arrangements between lenders and motor finance brokers.
The FCA said the halt was intended to prevent “disorderly, inconsistent and inefficient outcomes” while it assessed the scale of potential harm.
Since then, rulings from the Supreme Court and High Court have provided legal clarity, allowing the regulator to move ahead with plans for a compensation scheme for customers who were treated unfairly.
The FCA stressed that complaints must now be addressed promptly, noting that some people have been waiting nearly two years for a final response. A broad scheme is being consulted on, meaning relatively few complaints should fall outside it.
Those that do will need to be handled under standard complaint rules, and firms will generally have up to eight weeks after 31 May 2026 to provide an answer, depending on when the complaint was first lodged.
Leasing complaints are not included in any extension because they are outside the proposed scheme. Firms must begin issuing final responses to these from 5 December 2025.
The regulator will set final scheme rules in February or March 2026 and expects firms to retain relevant records until April 2031.
Consumers who have already complained do not need to take any action, while anyone concerned about undisclosed commission is encouraged to come forward.