29 October 2024 Update
On 25 October 2024 the Court of Appeal issued a judgment which goes beyond the scope of the current Financial Conduct Authority (“FCA”) motor commission review. Whether the Judgment applies to commission types outside of the FCA’s motor finance review into discretionary commission arrangements (“DCA”) is not yet clear. While the Judgment is likely to extend the current period of uncertainty for customers, lenders and dealers alike, we are seeking clarity with the FCA and will update this page with any new information. This does not impact your ability to raise a complaint at any time, should you wish to do so.
If you would like to raise a complaint and it falls within the FCA’s motor finance review of DCAs, this will still be subject to the pause the FCA introduced on complaint handling rules, and you will not receive a response within the usual 8-week deadline. Further information can be found below. If your complaint does not involve a DCA, it will not be subject to the FCA’s pause at this time, however this could change, for now we will handle your complaint in accordance with our normal complaints handling process.
Discretionary Commission Arrangement Complaints
24 September 2024 Update
On 24 September 2024, the FCA announced they are extending the pause on complaint handling rules for discretionary commission arrangements (“DCAs”). They will now announce the findings of their investigation in May 2025 and have extended the pause on complaints handling to 4 December 2025.
The Financial Conduct Authority (“FCA”) has described a discretionary commission arrangement (“DCA”) as an arrangement between lenders and brokers which allowed the broker to adjust the interest rates offered to customers. Typically, the higher the interest rate, the more commission the broker received. This practice was banned by the FCA in 2021, however they are now undertaking a review of the industry to understand whether there has been a widespread failure to comply with relevant requirements, resulting in financial loss or harm to consumers.
You may have an eligible DCA complaint if:
- You used car finance to buy a car before 28 January 2021, this includes conditional sale agreements and fixed-sum loan agreements.
- A discretionary commission arrangement was operated in relation to your agreement.
If you have an eligible DCA complaint, you will not receive a final response within the usual 8-week deadline. The FCA has extended the deadline until 4th December 2025.
If you’re unhappy with our final response, you’re able to take your complaint to the Financial Ombudsman Service (“FOS”). Usually, you have six months from the date of our final response letter to refer your complaint, however, as a result of the pause to complaint handling, this has been extended by up to 15 months.
For further information, you can visit the announcement on the FCA’s website here.
To make a complaint to us in relation to a commission arrangement, please complete the below form.