RSM UK says FCA should place onus on firms to proactively redress motor finance complaints

As motor finance complaints hit record levels, with 18,658 new car loan complaints in Q4 2024 RSM UK says it hopes the FCA puts the onus on firms to take the lead in compensating those impacted by discretionary commission arrangements.

Tom Petty, risk assurance director, RSM UK said: “We hope that, whatever the outcome of the Supreme Court ruling, the regulator puts the onus on individual firms to proactively contact impacted customers, rather than making them complain, or go down a similar route to PPI. From a Consumer Duty perspective, if a customer has been impacted but doesn’t complain, they will not receive a fair outcome unless this happens. If the onus is on the firms to conduct the assessment and proactively contact impacted customers, this leads to a fairer customer outcome.

“From the firm’s perspective, there are also benefits in this approach. While firms may think they will save money by only responding to customers who complain, the time and resource (financial and non-financial) to handle these complaints will be significant. They will need large teams of people for the foreseeable future.

“By the regulator stipulating firms take this proactive approach, the likely resource need will be reduced, and this approach should also reduce the number of complaints being escalated to the Ombudsman.

Further comfort will be provided to customers if the regulator imposes that each firm attests that all impacted customers have been remediated.”