New Guidance on Motor Finance Complaints

Following the Supreme Court judgment and the Financial Conduct Authority (FCA)’s Redress Consultation, the BVRLA has worked closely with members and the association’s legal advisers, Norton Rose Fulbright on guidance for members. The Guidance Note on handling motor finance–related complaints has a particular focus on Personal Contract Hire (PCH).

The guidance is designed to help members navigate an unsettled regulatory landscape and take a more consistent, robust and defensible approach to complaint handling.

Key takeaways from the Guidance Note include:

• Clear legal distinction between credit and hire: The law treats regulated hire differently from regulated credit. An unfair relationship under the Unfair Relationship Provisions cannot arise between an owner and a PCH customer, meaning the findings in Hopcraft do not apply directly to PCH complaints.
• Ongoing regulatory obligations: While there is no direct read-across from Hopcraft or the FCA consultation, members must continue to comply with the FCA Principles of Business and CONC. The guidance highlights the key areas requiring particular care.
• Financial Ombudsman Service (FOS) risks: Complaints escalated to the FOS remain challenging due to its broad “fair and reasonable” discretion. Practical examples are included to support member responses.
• Approach to redress: Where redress may be payable, the guidance explores how this could be calculated based on actual loss, including how liability might be shared between owner and broker.
• FCA enforcement tools: The guidance outlines the range of tools available to the FCA to address compliance concerns and how these have been used in practice.

The Guidance Note is available exclusively to members and can be accessed via the BVRLA website (login required).

The document has been written for a wide audience, from Board level to legal, compliance and operational teams, share it internally with the appropriate colleagues.

Members will need to be signed in with member privileges to access the Guidance section of the website. See below for support getting set up.

If you experience any issues accessing the guidance, contact [email protected].

Also see the BVRLA's Commission Disclosure resources page.

Accessing member-only content on BVRLA.co.uk

For existing users (logged into previous website in last 12 months):

1. Visit 'MyBVRLA' or navigate to the ‘Login’ icon (within the main navigation bar to the right-hand side)
2. Enter your email address (same one used on previous website)
3. Select ‘Forgot your password?’ (the password used to access the previous site will not work)
4. Re-enter your email address and follow the instructions to validate your account

NOTE: If the above process does not work, follow the steps for new users.

For new users:

1. Visit the 'Register for a free account' webpage
2. Enter contact details, select correct member organisation from the dropdown list
3. Accept the Terms and Conditions and Privacy Policy
4. Submit. The registration will then need to be approved by team member listed as the Primary Contact with the BVRLA