Why 4 December 2025 matters for car finance claims
In January 2024, the Financial Conduct Authority (FCA) announced a pause on complaint deadlines involving discretionary commission arrangements (DCAs) in car finance. The goal was to review how lenders used commissions and whether consumers were fairly treated. As part of this review, the FCA has given lenders until 4 December 2025 to respond to complaints about these arrangements.
This date is now the central point for thousands of UK drivers making mis‑sold car finance claims. Understanding what this deadline means — and what you should do now — is critical to protecting your refund rights.
What is the FCA’s pause, exactly?
The FCA’s ruling doesn’t stop you from making a claim. It only delays how long lenders have to respond. Any complaint involving DCAs — where the interest rate was adjusted to give the broker or dealer more commission — falls under this rule.
The FCA has asked lenders to hold off on responding so that it can assess evidence, review court rulings, and decide whether a wider redress scheme is needed.
You can still submit your claim. And you should. But the official reply from the lender may not come until the freeze is lifted on 4 December 2025.
How does the delay affect your complaint?
In practice, this means:
- Your complaint can be submitted now, and will be logged by the legal team or partner solicitor handling it.
- The lender will not be expected to reply until the FCA’s pause ends.
- If the FCA orders a redress scheme, your complaint may be reviewed under that structure instead of one-by-one.
The delay ensures fairness across all complaints — so lenders don’t rush through cases before legal clarity is available.
What happens after 4 December 2025?
Once the deadline hits, the FCA is expected to do three things:
- Release updated guidance for how lenders should handle new and existing complaints
- Clarify consumer rights in situations involving DCAs and other hidden commission models
- Decide whether a redress scheme — like PPI — is needed for affected consumers
If a redress scheme is introduced, lenders may be required to proactively contact affected customers. But submitting your complaint now will keep you at the front of the queue.
Do I need to do anything before December 2025?
Yes. Submitting your claim before the deadline helps secure your complaint under current guidance. Even if you don’t have paperwork, most claims can be started online with just your name, date of birth, and address history.
Claim tools typically connect to finance databases and retrieve your old car finance agreements — even if you’ve changed names or moved homes.
Should I use a claims management company?
You don’t have to. You can contact your lender directly, and if they don’t help, escalate to the Financial Ombudsman Service for free. But many consumers prefer using a firm that can:
- Find agreements going back over a decade
- Build a complaint using legal templates
- Negotiate on your behalf when the pause ends
These services usually charge a No Win, No Fee percentage if you win compensation — often between 18% and 36%.
Why this pause could work in your favour
While delays are frustrating, this temporary freeze gives the FCA time to create a fair process. It also increases the chance of consistent payouts for affected customers.
Many claims made now are simply being held in queue — and could be paid faster once the legal rules are finalised. So if you’re worried about missing out, don’t be. Submitting early still puts you ahead.
Common myths about the FCA deadline
- “I have to wait until December 2025 to do anything.” False — claims can and should be started now.
- “It’s too late to file my complaint.” False — the deadline is for lenders, not consumers.
- “Only recent car finance deals qualify.” False — agreements dating back to 2007 can be reviewed.
How to protect your rights during the pause
Here are three simple actions you can take today:
- Use a trusted claim checker that finds your car finance history
- Submit your complaint before December 2025 to stay eligible
- Keep any documents or emails you do have in a safe place
If your claim is successful, you could receive £1,000s in compensation — and in many cases, your lender will refund excess interest, fees, and costs tied to mis‑selling.
Remember: this isn’t about being patient — it’s about being first
When the FCA ruling is issued, claims already submitted will move forward faster. Don’t miss out by waiting for headlines. Take action now — and let the process work for you.
