Important update

Vehicle finance commission complaints – information for customers

Latest update

 

On 7 October 2025, the Financial Conduct Authority (FCA) published their consultation on the proposed motor finance redress scheme.

 

The consultation will last until 18 November 2025 before the FCA publish their final decision. We won’t know until the FCA close their consultation and publish their final decision on how the compensation scheme will work. They’ve said any scheme will be easy for customers to understand and participate in without needing to use a claims management company or law firm.  So, we’d encourage you to continue to submit any complaints to us directly.

 

What you should know: 

  • You can read the update from the FCA here.
  • If you’re looking to make a complaint about a commission, you can use our commission complaint form.
  • If you’ve already made a complaint about a commission arrangement, you don’t need to do anything else.

 

    How we got here

    On 11 January 2024, the FCA announced a review of the motor finance market. This was due to the high number of customer complaints about discretionary commission arrangements, which were banned in January 2021. This announcement extended the time we have to respond to complaints about discretionary commission arrangements.

     

    On 25 October 2024, the Court of Appeal changed the legal standard needed for lenders like us to make customers aware of commission payments related to their finance on the basis that dealers owe a fiduciary duty to their customers when arranging motor finance.

     

    On 22 November 2024, we submitted an application for permission to appeal the Court of Appeal's judgment in respect of the "Hopcraft" motor finance commissions case.  

     

    On 11 December 2024, we were informed that permission to appeal had been granted by the Supreme Court. The FCA announced that before it could take any further steps it would need to wait for the Supreme Court's decision.  

     

    On 19 December 2024, the FCA announced that they were extending the time that motor finance lenders have to respond to complaints about any commission payments linked to motor finance. This extension is due to last until 4 December 2025. However, the FCA are also consulting on extending the deadline for firms to send a final response to certain motor finance complaints to 31 July 2026.  

     

    On 1 August 2025, the Supreme Court confirmed that the dealers did not owe a fiduciary duty, but there can be situations where the relationship between the customer and dealer can be unfair.  

     

    On 3 August 2025, the FCA announced their plans to establish a consumer redress scheme and there would be a consultation to outline the proposed scheme and who would be eligible.  

    Complain about commission

    STEP 1

    Check your details to complain about commission




    Enquire online 


    Our online form is the quickest way to make a complaint about commission linked to your vehicle finance. It takes less than 5 minutes to complete. Once you’ve submitted your complaint, you’ll get an email receipt. 

    For other types of complaint, or if you’re making a complaint on behalf of someone else, contact our complaints team.



     

    STEP 2

    Our specialist complaints team will review your information


     

    If we find your motor finance agreement and it shows we paid a commission, we'll raise a complaint for you. 



     

    STEP 3

    We’ll be in touch once the FCA have completed their industry-wide review

    While they carry out their review, the FCA have put in place a pause in responding to customers complaints about commission. This will ensure complaints are dealt with fairly by all vehicle finance lenders. 


    The pause is currently due to end 4 December 2025. 


    The outcome of the FCA’s review will decide if we need to take any action on these complaints, such as customer compensation. 


     

    Frequently asked questions

    Vehicle finance commission

      What does the latest FCA announcement mean for me?

      At the moment, nothing changes. The FCA will consult on their proposed compensation scheme and that’s due to last until 18 November 2025. Once the consultation is closed, the FCA will decide if we need to take any action on these complaints, such as customer compensation. 

      When will I find out whether I’m owed any compensation?

      Once the FCA complete their consultation and announce their final decision, we will be able to give you an update on your complaint and any next steps.

      You can find out more about the FCA’s next steps on their website - FCA to consult on a compensation scheme for motor finance customers | FCA.

      How do I know what type of commission was linked to my agreement?

      If your agreement was taken out before 28 January 2021, there may have been a discretionary commission arrangement in place with the dealer or broker who arranged your finance.


      If your agreement started after this date, we may have paid a different type of commission for your motor vehicle finance. This is known as a ‘non-discretionary commission arrangement’ or non-DCA.


      The FCA’s proposed redress scheme aims to compensate motor finance customers who were treated unfairly and covers both DCA and non-DCA. agreements. You can still make a complaint about any commission payments linked to your motor finance agreement(s), either DCA or non-DCA.

      I was told I didn't have a discretionary commission arrangement. Can I make a new complaint about a different type of commission?

      Yes, you can make a complaint. The quickest way to make a complaint is using our webform, you don’t need to use a claims management company to do it.


      Just so you know, we’re currently dealing with a high volume of enquiries about commission arrangements, and we’re checking each case thoroughly. It may take us longer than usual to respond to some customers. 

      Why do you pay commission to dealers and brokers?

      We pay commission to the dealer or broker for introducing you to us and arranging your motor vehicle finance on our behalf.

      Scope of the FCA commission review

        Does the review only cover cars?

        We provide finance for cars, vans, motorcycles and leisure vehicles (like motorhomes).  All these types of motor vehicles are covered by the review.

        Does this apply to just new vehicles, or used as well?

        This applies to both new and used motor vehicles.

        Which finance products are included in the FCA's review?

        The FCA’s review covers Hire Purchase, Personal Contract Purchase (PCP) and Conditional Sale.

        Does this apply to businesses who took out finance on a vehicle, or is it only consumers?

        This applies to consumers, sole traders, and partnerships. If you’re a limited company or LLP and you’ve taken our finance with us, you aren’t impacted by this review.

        Does the review apply to customers in Northern Ireland?

        Customers in Northern Ireland are treated in exactly the same way as customers in England, Scotland and Wales, which means the announcement does apply to them.

        Does the review apply to customers in Ireland/Republic of Ireland?

        No. There’s a different regulator with different regulations in Ireland and that means they’re not impacted by this announcement.

        Vehicle finance commission complaints review process

          Am I entitled to compensation?

          At this stage, we can’t comment on any potential compensation customers may be entitled to. What we do know is on 11 January 2024, the FCA announced that they’re going to undertake work in the motor finance market.  

           

          The FCA began consulting on a compensation scheme in October 2025, following their announcement on 7 October. Once this is complete, the FCA will decide upon next steps and if the scheme goes ahead, payments to customers are expected to begin in 2026.
           


          You can find out more about the FCA’s work on their website, which is https://www.fca.org.uk/consumers/car-finance-complaints

          If I log a commission complaint, when will I get a final decision from you?

          Normally, we have to provide a response to your complaint within eight weeks or let you know that we need longer.  

           

          The Financial Conduct Authority (FCA) paused the requirement to respond to discretionary commission arrangement complaints while they undertake their review and decide what action, if any, will be required by firms for these complaints.


          The pause is currently due to end 4 December 2025.

           

          If you submit a relevant complaint, you’ll have to wait until after the pause has ended for a final response. The FCA has taken this step to make sure complaints are dealt with consistently by all motor finance providers. 

          Why haven’t you responded to my complaint about a discretionary commission arrangement?

          We’re sorry for the delay. We’re currently dealing with a high volume of enquiries about discretionary commission arrangements, and we’re checking each case thoroughly. It may take us longer than usual to respond to some customers.

          What are my options if I’m not satisfied with the outcome of my complaint about a discretionary commission arrangement?

          If you had a discretionary commission arrangement and received your final response letter between 12 July 2023 and 10 January 2024:  


          You now have the right to refer your complaint to the Financial Ombudsman Service (FOS), free of charge within 15 months of the date of your Final Response letter.


          If you had a non-discretionary commission arrangement and received your Final Response letter between 21 June 2024 and 19 December 2024: 


          You now have the right to refer your complaint to the FOS, free of charge on or before 29 July 2026.  



          These are an extension to the usual six months which the Financial Conduct Authority (FCA) have introduced to allow them time to complete their review into the historical use of commission arrangements in the motor finance industry. 


          Find information about services from the Financial Ombudsman Service.

          Why haven’t you been able to find my agreement with the information I submitted?

          Our automated process for matching and verifying the identity of our customers compares the information you submit against data held in our systems at the point your agreement ended.  If the information you provide doesn’t match our records, we won’t be able to find your agreement.

          Common reasons for this include:

          • If you’ve moved house and the address provided is not the same address we held at the time your agreement ended.
          • If the complaint is not brought by a customer named on the account, for example on behalf of a relative.
          • If your agreement was taken out more than six years ago, we’re far more likely to find it if you provide the agreement number. 
          • If you’ve changed your name and it’s not the same as what we had recorded at the time your agreement ended.
          • If the agreement you had was with another part of Close Brothers, and unrelated to motor finance. For example, Close Brothers Premium Finance fund vehicle insurance policies.


          To be able to confidently match your complaint with a historical finance agreement we need the following information:


          Agreement number OR vehicle registration
          Date of birth
          Full name (as at the end of your agreement)
          Address and postcode (as at the end of your agreement)
           

          Why did the FCA extend the pause for responding to complaints about discretionary commission?

          The extension to the pause is to give the FCA enough time to analyse the data they’re collecting from motor finance lenders and to assess the outcome of several legal cases on this matter. The FCA is currently consulting on a customer compensation scheme which began on 7 October 2025. This is due to last around six weeks. Once they announce their final decision, we will be able to update on timeframes.

          You told me previously you couldn’t find my agreement. Why have you now contacted me to say you have matched my enquiry to your customer records?

          When the FCA announced their review into motor finance commissions on 11 January 2024, we had to act quickly to start matching enquiries to our records. We help over 100,000 new customers each year, so we’ve had to work harder and smarter to match information we hold to an increased number of enquiries about commission.

             

          Unfortunately, this means that some customers have been told that we couldn’t find them initially. Since then, we’ve been continually improving how we match commission enquiries to records we hold and are now able to match records to customers that we weren’t able to previously. If we’ve now matched your details to an agreement that included a commission payment, you should have an email from us which explains any next steps. Any complaints about commission will be paused until 4 December 2025.

          I’ve submitted enquiries through your webform and through a claims management company. Which will you look at?

          If you’ve submitted multiple enquiries about the same agreement, we’ll investigate the one that arrived with us first and treat the rest as duplicates. We won’t do this if you're enquiring about different agreements, as these will be reviewed separately and logged as separate complaints if eligible. 

          You found my agreement. Why can’t you tell me all of the details about my account?

          Due to our data protection policies, we may need to redact customer information, and we can’t keep your data longer than needed. This means we might not be able to find all historical customer details in our systems.

          Our commission complaints policy


          For more information on our complaints handling procedures for complaints about commission you can download a copy of our complaints policy.