Important update

Vehicle 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.

How to complain

STEP 1

Check your details if you think you have a discretionary commission complaint


 

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.


Make a complaint online 



Our online form is the quickest way to make a complaint and 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

We’ll review and acknowledge your complaint


 

Our specialist team will review your complaint and email you with a complaints reference number (it starts with CDCR) within 5 working days.



 

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.

        I don’t know if I had an agreement with you, and I’ve got no details, what should I do?

        To help us find out if you’ve had an agreement with us, we can log an information request for you. This will enable us to investigate whether we have any records for you. Once we’ve done this, you could then log a discretionary commission complaint. Call our customer service team to make an information request. 

        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. 

        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.