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Motor finance firms must start handling complaints two months earlier than originally planned, according to the UK’s financial watchdog, as it finalises a compensation scheme for those affected by the mis-selling saga .

The Financial Conduct Authority (FCA) will be lifting a pause on the handling of certain motor finance complaints on May 31, rather than the July 31 deadline it previously proposed.

Firms should already be investigating complaints but have not needed to respond to them since the FCA put the process on pause in January 2024.

This was intended to prevent disorder and inconsistency while it put together plans for an industry-wide compensation scheme.

“It is likely that we will go ahead with a scheme and complaints that fall within it will be dealt with und

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