FCA plans to allow lenders longer to respond to complaints over car loan mis-selling

Lenders could get up to a year to respond to growing flood of complaints after shock court ruling last month

The City regulator plans to intervene in the growing car loan mis-selling scandal in a move that could give lenders up to a year to respond to a growing flood of customer complaints after a shock court ruling.

The Financial Conduct Authority has been under pressure to take action after a court of appeal ruling in October which said it was unlawful for two lenders to have paid a “secret” commission to car dealers without borrowers’ knowledge.