Motor finance complaints to resume on 1 June
The Financial Conduct Authority will lift its pause on motor finance complaints from 1 June.
The FCA paused the complaints process while it considered an industry-wide compensation scheme relating to undisclosed commissions.
With a scheme now in place that could see 14 million drivers receive payouts of about £700, complaints will resume next week and this could place a significant administrative burden on dealers, who will be required to provide historical finance data.
Phillip Garlick, CEO of Product Partnerships, said: “This is fundamentally a records, process and governance issue. Dealers need to assume that complaint activity is about to increase significantly and ensure they can retrieve finance files, commission records, and customer communications quickly and accurately. Many firms may need additional support to manage complaint volumes in a timely and structured way.”
He added:
“A lot of businesses are still treating this as something for lenders to worry about. But if you arranged the finance, handled the customer journey or discussed finance products in the showroom, your processes and records matter.”
