(Bloomberg) -- The UK’s Financial Conduct Authority has given lenders until late next year to respond to customer complaints regarding non-discretionary commissions on auto loans, as the watchdog presses ahead with its probe into the matter.

The extension is in line with the one already provided for complaints involving discretionary commissions. It comes after a court ruled in October that it was unlawful for car dealers to receive a commission from banks without customers’ consent, the FCA said in a statement on Thursday.

The watchdog had earlier asked for feedback on two proposed timelines — one until the end of May and another until Dec. 4, 2025, and it’s decided on the latter.

The FCA’s investigation has centered on commissions, which the agency banned in 2021. Before that, car dealers could often earn thousands of pounds for themselves, and the bank, by pushing up the interest rate they offered buyers using the practice. Non-discretionary commission arrangements is a practice where the commission offered to a broker is not tied to the interest rate charged to a customer.

The UK’s Supreme Court has agreed to hear an appeal from motor finance companies against the October ruling early next year, and a final verdict could help end the uncertainty many banks are facing over potential liabilities. Lenders are braced to pay out as much as £38 billion ($48 billion) in claims should judges rule against them. 

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