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DISP App 5.1 Purpose, interpretation and application

Purpose

DISP App 5.1.1 G
  1. (1)

    1This appendix contains rules and guidance in relation to a relevant motor finance DCA complaint that:

    1. (a)

      apply and modify the rules and guidance in DISP 1.2 (Consumer awareness rules), DISP 1.6 (Complaints time limit rules) and DISP 2.8 (Was the complaint referred to the Financial Ombudsman Service in time?); and

    2. (b)

      require lenders and credit brokers to retain and preserve relevant records.

  2. (2)

    Where, in relation to a relevant motor finance DCA complaint, provisions in DISP 1 or 2 refer to rules or guidance that are modified by this appendix, the modified provisions apply.

  3. (3)

    All rules and guidance in DISP continue to apply to a relevant motor finance DCA complaint unless otherwise stated.

Interpretation

DISP App 5.1.2 R
  1. (1)

    1For the purposes of this appendix, a relevant motor finance DCA complaint is a complaint where:

    1. (a)

      the subject matter of the complaint relates, in whole or part, to a regulated credit agreement entered into before 28 January 2021;

    2. (b)

      the regulated credit agreement, in whole or part, financed the purchase of a motor vehicle, or a motor vehicle was bailed or hired under the agreement;

    3. (c)

      there were arrangements between the lender and a credit broker relating to the entering into of that agreement that included a discretionary commission arrangement; and

    4. (d)

      the respondent:

      1. (i)

        received the complaint in the period beginning with 17 November 2023 and ending with 4 December 20252; or

      2. (ii)

        sent a final response to the complaint in the period beginning with 12 July 2023 and ending with 29 January 20262.

  2. (2)

    The arrangements referred to in (1)(c) are to be read as including any arrangement which would, if it had been entered into on or after 28 January 2021, have constituted a discretionary commission arrangement.

DISP App 5.1.3 G
  1. (1)

    1The purpose of DISP App 5.1.2R(2) is to ensure that the complaint handling rules in this appendix apply in respect of motor finance commission arrangements which are in substance equivalent to a discretionary commission arrangement but do not (because of the time at which they were entered into) meet the Handbook definition.

  2. (2)

    This will include such arrangements between persons undertaking equivalent activities under an Office of Fair Trading licence prior to the transfer of responsibility for the regulation of consumer credit to the FCA on 1 April 2014 (provided the other requirements in DISP App 5.1.2R(1) are met).

  3. (3)

    The effect of DISP App 5.1.2R(2) is that a relevant motor finance DCA complaint includes complaints involving any motor finance commission arrangements which would, if they were entered into on or after the date that the prohibition in CONC 4.5.6R was introduced, fall within the definition of a discretionary commission arrangement.

Application

DISP App 5.1.4 R

1This appendix applies to:

  1. (1)

    respondents and the Ombudsman in respect of a relevant motor finance DCA complaint; and

  2. (2)

    lenders and credit brokers in respect of records relating to any regulated credit agreement entered into before 28 January 2021 that meets the requirements in DISP App 5.1.2R(1)(b) and (c).

DISP App 5.1.5 R

1Where this appendix applies or modifies provisions in DISP 2, the term respondent in DISP App 5.1.2R and 5.1.4R has the glossary meaning that applies in that chapter.

DISP App 5.2 Complaint handling rules in respect of a relevant motor finance DCA complaint

Time limits for a final response, consideration by the Ombudsman and complaints records

DISP App 5.2.1 R
  1. (1)

    1This rule applies in respect of a relevant motor finance DCA complaint:

    1. (a)

      that is received in the period beginning with 17 November 2023 and ending with 4 December 20252; and

    2. (b)

      in relation to which a final response has not been sent.

  2. (2)

    For the purpose of calculating the eight-week period in:

    1. (a)

      DISP 1.6.2R;

    2. (b)

      DISP 1.6.7G;

    3. (c)

      DISP 2.8.1R(2); and

    4. (d)

      DISP 2.8.1R(4)(a),

    time is to be treated as not running for the period beginning with 11 January 2024 and ending with 4 December 20252.

  3. (3)

    The three-year period in DISP 1.9.1R(2) (Complaints record rule) is to be treated as not running for the period beginning with 11 January 2024 and ending with 4 December 20252.

DISP App 5.2.1A G

2 DISP App 5.2.1R(2) has the effect of extending the period during which the eight weeks referenced in the specified provisions are not treated as running for relevant motor finance DCA complaints received between 17 November 2023 and 4 December 2025. For relevant complaints that were received between 17 November 2023 and 25 September 2024, the time period had previously been modified (see Dispute Resolution: Complaints Sourcebook (Motor Finance Discretionary Commission Arrangement Complaints) Instrument 2024 (FCA 2024/1)).

Time limits for referring a complaint to the Ombudsman

DISP App 5.2.2 R
1
  1. (1)

    This rule applies where a final response to a relevant motor finance DCA complaint is sent in the period beginning with 12 July 2023 and ending with 29 January 2026.2

  2. (2)

    If a final response is sent in the period beginning with 12 July 2023 and ending with 29 April 2025, DISP 2.8.2R(1) is modified so that the Ombudsman cannot consider a complaint if it is referred to the Financial Ombudsman Service on or after 30 July 2026.2

  3. (3)

    If a final response is sent in the period beginning with 30 April 2025 and ending with 29 January 2026, DISP 2.8.2R(1) is modified so that the Ombudsman cannot consider a complaint if it is referred to the Financial Ombudsman Service more than fifteen months after the date on which the respondent sent the complainant its final response.2

DISP App 5.2.2A G

2 DISP App 5.2.2R has the effect of extending the time in which a relevant motor finance DCA complaint can be referred to the Financial Ombudsman Service. This includes those complaints in relation to which a final response was sent between 12 July 2023 and 25 September 2024 where the six-month period in DISP 2.8.2R(1) was previously extended to fifteen months (see Dispute Resolution: Complaints Sourcebook (Motor Finance Discretionary Commission Arrangement Complaints) Instrument 2024 (FCA 2024/1)).

DISP App 5.2.3 R

[deleted]2

Communicating with consumers

DISP App 5.2.4 R
  1. (1)

    1A respondent must update any information it has published pursuant to DISP 1.2.1R(1) as soon as is practicable to:

    1. (a)

      inform consumers of the pause to time limits for a final response as set out in DISP App 5.2.1R(2); and

    2. (b)

      refer them to fca.org.uk/carfinance2, which explains the reason for the pause.

  2. (2)

    This rule applies until 23:59 on 29 January 20262.

Communicating with complainants

DISP App 5.2.5 R

[deleted]2

1
DISP App 5.2.5A R
  1. (1)

    2This rule applies where a respondent:

    1. (a)

      received a relevant motor finance DCA complaint in the period beginning with 17 November 2023 and ending with 25 September 2024; and

    2. (b)

      has not sent a final response in relation to that complaint.

  2. (2)

    A respondent must:

    1. (a)

      promptly inform the complainant in writing of the extension to the pause to time limits as set out in DISP App 5.2.1R(2); and

    2. (b)

      direct the complainant to the information published at fca.org.uk/carfinance, which explains the reason for the pause.

DISP App 5.2.5B G

2 DISP App 5.2.5AR means that a respondent who sent a written acknowledgment to a relevant motor finance DCA complaint in the period beginning with 17 November 2023 and ending with 25 September 2024 should update the complainant that the pause to the eight-week period to send a final response now ends with 4 December 2025.

DISP App 5.2.5C R
  1. (1)

    2This rule applies where a respondent receives a relevant motor finance DCA complaint in the period beginning with 26 September 2024 and ending with 4 December 2025.

  2. (2)

    When a respondent sends a written acknowledgement in accordance with DISP 1.6.1R(1), they must also:

    1. (a)

      inform the complainant in writing of the pause to the time limits as set out in DISP App 5.2.1R(2); and

    2. (b)

      direct the complainant to the information published at fca.org.uk/carfinance, which explains the reason for the pause.

Communicating the Financial Ombudsman Service temporary time limits

DISP App 5.2.6 R

[deleted]2

DISP App 5.2.7 R
  1. (1)

    2This rule applies to a relevant motor finance DCA complaint where a final response was sent in the period beginning with 12 July 2023 and ending with 25 September 2024.

  2. (2)

    A respondent must:

    1. (a)

      promptly inform the complainant in writing that the time limit to refer the complaint to the Financial Ombudsman Service now ends with 29 July 2026; and

    2. (b)

      direct the complainant to the information published at fca.org.uk/carfinance, which explains the reason for the extension.

DISP App 5.2.8 G

2 DISP App 5.2.7R means that a respondent who sent a final response to a complainant in the period beginning with 12 July 2023 and ending with 25 September 2024 should update that complainant that the time limit to refer the complaint to the Financial Ombudsman Service pursuant to DISP 2.8.2R(1) has been extended to 29 July 2026.

DISP App 5.2.9 R
  1. (1)

    2This rule applies to a relevant motor finance DCA complaint where a final response is sent in the period beginning with 26 September 2024 and ending with 29 January 2026.

  2. (2)

    When providing a final response in accordance with DISP 1.6.2R(1), a respondent must:

    1. (a)

      inform the complainant that the time limit to refer the complaint to the Financial Ombudsman Service has been extended in accordance with DISP App 5.2.2R;

    2. (b)

      set out the date by which the complainant must refer the complaint to the Financial Ombudsman Service;

    3. (c)

      explain that the six-month time limit contained in the Financial Ombudsman Service’s standard explanatory leaflet does not apply; and

    4. (d)

      direct the complainant to the information published at fca.org.uk/carfinance, which explains the reason for the extension.

  3. (3)

    For the purpose of complying with DISP 1.6.2R(1)(e) and (f) (if applicable), the wording to include in a final response is modified so that:

    1. (a)

      references to ‘within six months of the date of this letter’ in DISP 1 Annex 3R(1) and (2), are substituted with either:

      1. (i)

        ‘on or before 29 July 2026’ if a respondent sends a final response on or before 29 April 2025; or

      2. (ii)

        ‘within fifteen months of the date of this letter’ if a respondent sends a final response on or after 30 April 2025; and

    2. (b)

      the reference to ‘is usually six months’ in DISP 1 Annex 3R(3) is substituted with either:

      1. (i)

        ‘is, in this case, on or before 29 July 2026’ if a respondent sends a final response on or before 29 April 2025; or

      2. (ii)

        ‘is, in this case, fifteen months’ if a respondent sends a final response on or after 30 April 2025.

DISP App 5.3 General record retention

DISP App 5.3.1 R
  1. (1)

    1Lenders and credit brokers must retain and preserve records:

    1. (a)

      relating to any regulated credit agreement entered into before 28 January 2021;

    2. (b)

      which meet the requirements in DISP App 5.1.2R(1)(b) and (c); and

    3. (c)

      that are or could be relevant to the handling of existing or future complaints or civil claims relating to discretionary commission arrangements.

  2. (2)

    The requirement in (1) applies:

    1. (a)

      regardless of whether a relevant motor finance DCA complaint has been made; and

    2. (b)

      in the period beginning with 11 January 2024 and ending with 11 April 20262.

DISP App 5.3.2 E

1The following will be relevant records for the purposes of the requirement in DISP App 5.3.1R:

  1. (1)

    the regulated credit agreement;

  2. (2)

    records of the commission arrangements relating to the regulated credit agreement;

  3. (3)

    records of any commission, fee or other financial consideration paid (directly or indirectly) in connection with the regulated credit agreement, including details of its structure and calculation;

  4. (4)

    customer files and records, including any agreement setting out the nature of the services offered, any customer transactions and payments; and

  5. (5)

    communications with the customer.