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Complaints about car finance commission

Last updated: 30 March 2026

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  1. Have you already complained about motor finance commission?
  2. What happens next?
  3. What is car finance commission?
  4. Information for financial businesses
  5. Previous updates

New rules for the Financial Conduct Authority's (FCA's) motor finance redress scheme were announced on 30 March 2026. These cover certain motor finance agreements. 

See more details about this scheme on the FCA websiteSee more details about this scheme on the FCA website.

The FCA has given lenders time to allow them to put the new scheme in place. This means it is likely to take a few months before you find out whether you will be awarded redress.

Please wait until you hear from your lender before bringing a complaint to us.

Have you already complained about motor finance commission?

   

Yes, I've already complained

  • If you have already brought your complaint to us

    You don’t need to do anything. We’ll investigate your complaint and give you an answer in due course.

  • If your complaint to your lender was paused under the temporary handling rules

    Wait to hear from them. They will tell you whether your complaint is covered by the FCA redress scheme.

No, but I intend to

  • If you haven't yet complained to your lender but intend to

    You still have time to complain to them. See the FCA website for more information on car finance claims.

What happens next?

  • You don't need to do anything.

    Your complaint isn’t affected by the FCA's motor finance redress scheme. So, we’ll investigate your complaint and give you an answer in due course.

  • Your lender now has to consider whether the FCA's scheme covers your complaint.

    This may take a number of months, because the FCA has said that lenders will have some time to allow them to put the new scheme in place. 

  • If you have already complained to your lender, you should wait to hear from them in line with the scheme timelines. It will likely be a number of months before your lender replies with the outcome of your case.

    If you’re unhappy with, or wish to query, your lender’s response, go back to them and ask for a ‘redress determination’.

    We won’t be able to look at your case until:

    • you have a redress determination, or
    • the deadline for providing a redress determination has passed.

    And we will only be able to look at whether your lender followed the FCA’s motor finance redress scheme rules. So, when you bring your complaint, please give details of why you believe they haven’t done this.

What is car finance commission?

When you get a new or used car, you might use a car finance agreement. This might be arranged with the car dealership. The car dealer, or another credit intermediary, may have arranged a finance agreement between you and a finance provider. The finance provider may then pay commission to the car dealer or credit broker.

A discretionary commission arrangement (DCA) is when the finance provider pays the car dealer commission – or a fee – based on the interest rate paid in the car finance agreement. The car dealer can set or adjust this interest rate. Often, the higher the interest rate, the more commission the car dealer will receive.

The FCA banned DCAs in January 2021.

There are other types of commission arrangements that car dealers and finance providers may use. Apart from DCAs, they mainly use:

  • fixed rate – finance providers pay a fixed amount of commission to the car dealer, usually a percentage of what is borrowed
  • flat fee – the finance provider pays the car dealer a fee for every finance agreement they process or arrange.

Information for financial businesses

If you’re a financial business looking for information to help you resolve complaints, read more on handling complaints about car finance commission. 

Previous updates

  • The Financial Conduct Authority (FCA) has announcedThe Financial Conduct Authority (FCA) has announced that the temporary complaint handling rules covering the more common finance agreements – such as hire purchase agreements, personal contract purchase agreements, or conditional sale agreements – have been extended from 4 December 2025 until 31 May 2026.

    This means that if you complain to a financial business about one of those finance agreements, it doesn't have to provide a final response at the moment.

    The FCA has also removed temporary rules extending how long businesses have to reply to complaints about the leasing of vehicles – sometimes called ‘hire agreements’.

    A lease or hire agreement is a different, and much less common, type of credit than hire purchase agreements, personal contract purchase agreements, or conditional sale agreements.

    What this might mean for your complaint

    If your complaint is about a lease or hire agreement, the normal time limits will once again apply. From today:

    • if you complain to a business it will need to respond within eight weeks, and
    • you will have six months from the date of that response to refer your complaint to us, if you’re not satisfied with that response.

    If you have already brought a complaint about a lease or hire agreement to us:

    • this change will have no impact on it
    • you don’t need to get in touch
    • we will contact you as soon as it’s possible to progress your complaint.

  • The Court of Appeal dismissed the appeal by a high street bank against a High Court judgement that had found in our favour.

    On 17 December 2024, the High Court found in our favourHigh Court found in our favour in a review of our decision to uphold a complaint relating to a discretionary commission arrangement (DCA) in a motor finance agreement.

    Separately, we're expecting the Financial Conduct Authority to publish its consultation on a proposed redress scheme for motor finance complaints sometime in October.

    What this might mean for your complaint

    Following this court ruling, we’re carefully considering next steps for motor finance commission cases with our service. We will update customers directly  as soon as we can. There's no need to contact us in the meantime.

  • We are aware of the Supreme Court judgement in the case of Johnson, Wrench and Hopcraft and are currently considering its impact on our approach to complaints about related issues.

    Read the Supreme Court judgement in the case of Johnson, Wrench and HopcraftRead the Supreme Court judgement in the case of Johnson, Wrench and Hopcraft

    Separately, the Court of Appeal hearing, which was adjourned on 1 July 2025, will now take place from 16 to 18 September 2025.

    What this might mean for your complaint

    We will update customers directly about next steps as soon as we can. There's no need to contact us in the meantime.

  • The Court of Appeal has adjourned the appeal of the High Court’s 2024 judgment on the judicial review of one of our decisions, which upheld a complaint about motor finance commission.

    The appeal – which was originally requested by a lender and due to take place from 1 to 3 July 2025 – won't be heard now until after the Supreme Court’s judgment has been given. 

    At this point, the next steps in this judicial review are unclear and we don't when the Court of Appeal hearing will take place. 

    What this might mean for your complaint

    We can't settle a number of complaints on car finance commission until after this hearing.

  • The FCA has announced temporary rulesFCA's temporary rules on motor finance commission to extend how long:

    • firms have to respond to motor finance complaints where a ‘non-discretionary commission arrangement’ was involved, and
    • consumers have to refer complaints to us.

    This means that the rules for all complaints about motor finance agreements where there were commission arrangements in place are now in line with those announced in January 2024, which covered agreements linked to discretionary commission arrangements.

    Ongoing legal action – involving commission arrangements in motor finance – could also affect our work on complaints involving similar issues. 

    So the findings of the Supreme Court – which will consider an appeal of the recent judgement in Johnson, Wrench and Hopcraftjudgement in Johnson, Wrench and Hopcraft in early 2025 – might be something we need to think about. 

    What this might mean for your complaint

    • Financial businesses have until 4 December 2025 before they have to start responding to complaints again.  
    • As a customer, you have longer to bring your complaint to us – until at least July 2026.

  • On 17 December 2024, the High Court found in our favourLink is external  ,High Court found in our favour in a review of our decision to uphold a complaint relating to a discretionary commission arrangement (DCA) in a motor finance agreement.

    What this might mean for your complaint

    We are carefully considering the judgement and what that means for other similar cases that are with us.

  • The Court of Appeal ruled that it was against the law for brokers to receive a commission of any kind from lenders providing motor finance, without the customer’s informed consent.

  • The FCA introduced rules for handling motor finance complaints where there was a 'discretionary commission arrangement' (DCA) between the lender and the broker of the loan.

    What this might mean for your complaint

    The new rules extended the time financial businesses have to respond to these complaints until after 4 December 2025.