Honda Financial Services

Key Date

Update

11^th January 2024

The FCA announced they would be reviewing historic commission paid to dealers on motor finance agreements, specifically discretionary commission arrangements (DCA). Lenders were advised that they had until 25^th September 2024 to respond to any customer complaints received.

24^th September 2024

The FCA advised the investigation would continue, and the timeframe lenders were given to respond had been extended from 25^th September 2024 until 4^th December 2025.

25^th October 2024

The Court of Appeal ruled on 3 cases involving automotive finance, all of which concerned the disclosure of commission paid to motor dealers by lenders for arranging finance agreements to buy vehicles. The judgement found in favour of customers.

19^th December 2024

Following the Court of Appeal judgment, the FCA announced that lenders have until 4^th December 2025 to respond to both DCA and non – DCA (disclosure of commission) complaints.

1st August 2025

The Supreme Court issued its decision on the appeal concerning 3 motor finance cases previously ruled on by the Court of Appeal in October 2024.

The Court rejected the Court of Appeal judgment for 2 cases but upheld 1 in relation to an unfair relationship.

3rd August 2025

The FCA announced they will be issuing a public consultation on a compensation scheme in early October 2025, proposing that the scheme will cover discretionary commission arrangements if they were not properly disclosed. The FCA will also consult on which non-discretionary commission arrangements should be included.

The aim of a scheme would be to get compensation to eligible customers directly without the need to make a complaint. Compensation is not likely to be received until 2026 at the earliest.

7th October 2025

The FCA published their public consultation on their proposed compensation scheme for eligible customers. The scheme covers both discretionary and non-discretionary commission arrangements and outlines which customers are eligible for redress, including how it will be calculated. They also propose to extend the deadline for firms to provide final responses to these complaints to 31 July 2026.

The deadline for feedback to the consultation is 18th November 2025 and 4th November 2025 for changes to the complaint handling rules.

30^th March 2026

The FCA has confirmed an industry‑wide Motor Finance Consumer Redress Scheme. Honda Financial Services will now handle complaints under these final rules rather than the previously paused complaint process.

The scheme runs in two parts (based on when your agreement started)

• Scheme 1: agreements started 6 April 2007 – 31 March 2014.
• Scheme 2: agreements started 1 April 2014 – 1 November 2024.

Key dates for customers who’ve already complained to us

• If your agreement started before 1 April 2014 (Scheme 1):
  You can expect to hear from us by 30 November 2026. This reflects the FCA’s implementation window to 31 August 2026 for earlier agreements, followed by up to three months for outcomes.
• If your agreement started on/after 1 April 2014 (Scheme 2):
  You can expect to hear from us by 30 September 2026 with our decision under the FCA scheme. This reflects the FCA’s implementation window to 30 June 2026 for these agreements, followed by up to three months for firms to confirm outcomes.

You don’t need to do anything now. If we need anything from you, we’ll be in touch