FCA Update Dec 2025: PS25/18 and the New May 2026 Deadline
Breaking News: The FCA has published Policy Statement PS25/18, extending the complaint handling pause to May 2026 and clarifying rules for leasing. Here is what you need to know.
The Financial Conduct Authority (FCA) has released its latest Policy Statement, PS25/18, titled "Changes to handling rules for motor finance complaints". This update brings significant changes to the timeline for car finance refunds.
Key Update: The "Pause" is Extended
The FCA has extended the time lenders are allowed to wait before giving you a final answer.
- Pause Ends: May 31, 2026 (Previously Dec 2025)
Important: This is a deadline for the lender, not for you. It means they don't have to give you a final "Yes" or "No" until this date. It does NOT mean you have to submit your claim by this date. You can (and should) submit your claim now to be in the queue.
This delay is designed to give the FCA time to consult on a formal Consumer Redress Scheme—a mass payout system that could simplify the process for everyone.
Leasing (PCH) is Excluded
In a crucial clarification, the FCA has confirmed that Personal Contract Hire (Leasing) agreements will NOT be included in the proposed redress scheme.
- What this means: If your complaint is about a leasing agreement, the "pause" will end much sooner.
- Resumption of Leasing Complaints: The pause on leasing complaints lifts on December 5, 2025, meaning firms must resume issuing final responses from this date.
The Cut-Off Date Confirmed
The policy statement reinforces that the proposed redress scheme will cover agreements entered into before November 1, 2024. If you took out a finance agreement after this date, it will likely fall under standard complaint rules rather than the mass scheme.
What Should You Do?
- Don't Panic: The extension is not a cancellation. It is a sign that the FCA is building a robust framework for mass payouts.
- Submit Your Complaint: If you haven't already, get your complaint in the system. Lenders are logging them, and you want to be in the queue when the scheme goes live in 2026.
- Check Your Agreement Type: If you have a lease (PCH), you can expect a response sooner than PCP/HP customers.
Source: FCA PS25/18: Changes to handling rules for motor finance complaints
The Car Finance Refund Team
A collective of consumer rights advocates, legal researchers, and software engineers dedicated to helping UK drivers reclaim unfair car finance commissions.
Disclaimer: This content is for informational purposes only and does not constitute legal or financial advice.
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