Latest Industry News

 

Latest Regulatory and Legal Developments Summary

  • 28 January 2021 – The FCA ban came into effect and this covers the use of discretionary commission models in the motor finance market where the amount of commission the broker receives is linked to the interest rate paid by the customer, and which the broker has the power to set or adjust.
  • 11 January 2024 – FCA imposed a moratorium on processing of DCA mis-selling claims sparking fears among bank investors of potential liabilities similar to the PPI scandal – Lloyds provisioned £450m, Close Brothers scrapped its dividend and announced a £400m plan to bolster its capital provisions.
  • 24 January 2024 – Key decisions by the FOS on two DCA complaints were found in favour of the customers.
  • 24 September 2024 – FCA PS24/11 – Following its consultation from 30 July 2024, FCA enacted extension of the pause for complaints handling to December 2025 and committed to publishing its findings by May 2025. FCA confirms extension of complaint handling pause for motor finance DCAs
  • 17 – 19 October 2024 – DCA Judicial Review heard at the High Court on a rolled-up basis
  • 25 October 2024 – Court of Appeal judgement handed down in fixed fee cases (three cases combined in one judgement) and FCA released a statement
  • 29 October 2024 – Updated FCA Statement on Court of Appeal judgement in fixed fee cases, including a speech by FCA Chief Executive
  • 15 November 2024 –  FCA released call for input into modernising the redress system – plans to look at how mass redress events are dealt with to make the process more efficient and streamlined – Call for Input Modernising the Redress System
  • 21 November 2024 – FCA published CP24/22 to consult on pausing complaint handling for fixed fee cases
  • 10 December 2024 – Supreme Court granted permission to Close Brothers and FirstRand Bank to appeal the Court of Appeal judgement in the fixed fee cases (Johnson)
  • 17 December 2024 – DCA Judicial Review judgement handed down dismissing Clydesdale’s application on all grounds
  • 19 December 2024 – FCA announced pause on the lender processing of fixed fee cases
  • 24 December 2024 – Permission to appeal the DCA Judicial Review granted to Clydesdale (hearing date listed for 8 December 2025 but likely to be expedited, if not withdrawn)
  • 17 February 2025 – Supreme Court rejected HM Treasury’s application for intervention in Johnson case
  • 1-3 April 2025 – Supreme Court hearing of the appeal in Johnson with judgement expected by end Q2
  • By end May 2025 – FCA intends to set out the findings of its review into DCA (subject to longstop date of December 2025)
  • By 4 December 2025 – FCA expected to set out position regarding fixed fee cases