Vehicle finance discretionary commission complaints
The Financial Conduct Authority says some customers may have been charged too much on their vehicle finance before 2021.
Get support with commission complaintsVehicle finance discretionary commission complaints – information for customers
On 11 January 2024, the Financial Conduct Authority (FCA) announced that they’re going to undertake a review in the vehicle finance market.
The FCA’s review is due to the high number of customer complaints about discretionary commission arrangements, which the FCA banned in January 2021. This work is market-wide and affects all providers of vehicle finance.
If you think you might have been affected, the information below will give you more information and help you decide what you should do next.
Enquire about a discretionary commission arrangement
STEP 1
Check your details to make a complaint about a potential discretionary commission arrangement
If you took out vehicle finance on a regulated agreement before 28 January 2021 you may be able to make a discretionary commission arrangement complaint.
Enquire online
Our online form is the quickest way to find out if you had a discretionary commission arrangement for your motor finance, and to make a complaint. It takes less than 5 minutes to complete. Once you’ve submitted your enquiry, you’ll get an email receipt.
For other types of complaint, or if you’re making an enquiry on behalf of someone else, contact our complaints team.
STEP 2
Our specialist complaints team will review your enquiry
We'll check your details to see if you have had motor finance with us. If we find you had a discretionary commission arrangement, we'll raise a complaint for you.
STEP 3
We’ll keep you updated while the FCA carry out an industry wide review on discretionary commission arrangements
While they carry out their review, the FCA have put in place a pause in responding to customers complaints about discretionary commissions arrangements.
The pause will last, at least, until the 25 September 2024, and will ensure complaints are dealt with fairly by all vehicle finance lenders.
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
Discretionary commission arrangements
Did my agreement have a discretionary commission arrangement?
If your agreement was taken out before 28 January 2021, there may have been a discretionary commission arrangement in place with the intermediary selling the vehicle, such as a dealer or broker.
I took out finance on my vehicle after 28 January 2021, can I make a claim?
On 28 January 2021, the FCA banned all discretionary commission arrangements. As a result, the work the FCA is going to undertake only looks at agreements that started before 28 January 2021, and where there was a discretionary commission arrangement in place with the intermediary selling the vehicle, such as a dealer or broker.
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 vehicles are covered by the review.
Does this apply to just new vehicles, or used as well?
Both new and used vehicles which were financed.
Is the FCA’s review only looking at Personal Contract Purchase (PCP) agreements?
Our current understanding is no. The FCA’s review covers Hire Purchase, PCP and Conditional Sale.
Does this apply to businesses who took out finance on a vehicle, or is it only consumers?
Our current understanding is it’s regulated business only, but we can confirm when we receive the outcome of the 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 is a different regulator with different regulations in Ireland and that means they are not impacted by this announcement.
Vehicle finance commission complaints review process
Am I entitled to compensation?
At this stage, we can’t comment on if there is likely to be any potential remediation process. What we do know is on 11 January 2024, the FCA announced that they’re going to undertake review work in the motor finance market and the FCA is currently anticipating announcing next steps on 24 September 2024.
This is due to the high number of complaints coming from customers regarding discretionary commission arrangements (DCAs) which existed prior to changes introduced by the FCA in 2021.
This work is market-wide and affects all providers of vehicle finance.
You can find out more about the FCA’s work on their website, which is www.fca.org.uk.
If I log a discretionary commission complaint, when will I get a final decision from you?
Normally, we must provide a response to your complaint within 8 weeks, or let you know that we need longer.
The FCA recently announced that finance providers are required to pause responding to discretionary commission arrangement complaints for 9 months while they undertake their review and decide what action, if any, will be required by firms for these complaints. If you submit a relevant complaint, you will have to wait until the end of this 9 month period for a response. The FCA has taken this step to ensure complaints are dealt with consistently by all motor finance providers.
This pause is limited to only discretionary commission arrangement complaints. There are no changes to the timescales in place for all other complaints.
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 28 days to respond to some customers.
What are my options if I am not satisfied with the outcome of my complaint about a discretionary commission arrangement?
If you 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. This is an extension to the usual six months which the FCA have introduced to allow them time to complete their review into the historical use of discretionary commission arrangements in the motor finance industry. For information on the service the Ombudsman provides can be found here.
Free and independent advice
FCA commission review
Information on the FCA’s review of discretionary commission arrangements and the temporary measures they’ve put in place.
Financial Ombudsman Service (FOS)
Summary of criteria for customers making a complaint about commission paid to dealers, and the additional support they provide.
Our complaints policy for discretionary commission arrangements
For more information on our complaints handling procedures for discretionary commission arrangements you can download a copy of our complaints policy.