The FCA and Solicitors Regulation Authority (SRA) have issued a joint message to claims management companies and law firms involved in motor finance commission claims.
The regulators are emphasising the issue of multiple representation. This is when a complainant may have multiple representatives instructed on the same claim, with instances of up to four different representatives appearing for a single claim noted.
To address this with motor finance lenders, the FCA has also issued a Dear CEO letter outlining the steps it expects firms to take to mitigate delays, confusion and unnecessary termination fees for customers.
It’s important for lenders to conduct due diligence and identify when multiple representatives are involved in the same complaint. Necessary steps for lenders include:
- Where a complaint has multiple representatives, contact all representatives and explain the issue to ascertain who is the sole representative. Ensure all correspondence is copied to the customer.
- Provide all representatives associated with the complaint, along with the customer, with the corresponding information so that a clear view and decision can be made about who is the sole representative.
- Ensure these communications support constructive engagement with the multiple representatives and help the customer understand any associated implications, such as potential termination fees.
- Once the sole representative has been confirmed, close all duplicate complaints and inform all parties. If, despite reasonable efforts, a sole representative cannot be ascertained, the customer should be asked how they wish to progress
The FCA is urging lenders to take these steps to help ensure the timely and effective implementation of the Motor Finance Consumer Redress Scheme (CRS) once the final rules are published in March 2026 and the current pause on handling motor finance commission complaints is lifted in May 2026.
With the FCA’s expectations defined and the countdown to the CRS underway, now is the time for lenders to assess whether their complaints-handling, governance and remediation frameworks are robust enough to withstand regulatory scrutiny.
TCC Group supports motor finance firms with end-to-end compliance, redress and large-scale remediation programmes, from regulatory gap analysis and operational design to skilled resource deployment and delivery oversight. If you want confidence that your business is operationally ready for CRS implementation and the resumption of commission complaints, contact us to discuss how we can help you prepare, mobilise and deliver with control.
