Solicitors representing clients with claims for mis-sold car finance have expressed frustration at the Financial Conduct Authority’s (FCA) delay in completing its work on the issue.

This comes as news emerged that the FCA has allowed itself until May 2025 to decide on what further action it needs to take. At the same time, the FCA intends to allow finance providers until 4 December 2025 to provide a final response to any complaint, which will obviously delay the resolution of a very large number of complaints.

The FCA’s report into car finance mis-selling was initially due this September. Still, the industry regulator said that it needs extra time to analyse data it has collected from firms and properly assess the outcome of the legal case brought by Barclays after the Financial Ombudsman decided it hadn’t treated a customer fairly in its car finance agreement.

The review was launched at the start of the year following concerns that many consumers may have been overcharged for their car loans through discretionary commission arrangements.

This may come as disappointing news to consumers waiting for a decision (a further 18 month delay is not small!) but the FCA’s decision does at least suggest that there is a case for car finance firms to answer, and that the FCA may order some compensation to be paid.

Here at Box Legal we can arrange After the Event Insurance for financial Mis-selling claims so if you are representing claimants in car finance claims, do get in touch to find out more about our Claimsafe After the Event Insurance.