On 11 January 2024, the Financial Conduct Authority (FCA) announced a review of the vehicle 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.
A judgment by the Court of Appeal on 25 October 2024 changed the legal standard needed for lenders like us to make customers aware of commission payments related to their 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 has been granted by the Supreme Court.
On 19 December 2024, the FCA announced that they are extending the time that motor finance lenders have to respond to complaints about any commission payments linked to motor finance. This extension will last until 4 December 2025.
What you should know:
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.
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 vehicle finance. This is known as a ‘non-discretionary commission arrangement’ or non-DCA.
As a result of the FCA’s announcement on the 19 December, you can now make a complaint about any commission payments linked to motor finance.
Yes, you can make a complaint. The quickest way to make a complaint is using the webform here.
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.
We pay commission to the dealer or broker for introducing you to us and arranging your vehicle finance on our behalf.
We provide finance for cars, vans, motorcycles and leisure vehicles (like motorhomes). All these types of vehicles are covered by the review.
This applies to both new and used vehicles.
The FCA’s review covers Hire Purchase, Personal Contract Purchase (PCP) and Conditional Sale.
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.
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.
No. There is a different regulator with different regulations in Ireland and that means customers in Ireland are not impacted by this announcement.
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 are planning to announce the outcome of their review in May 2025, giving lenders until 4 December 2025 to implement any changes, such as a compensation scheme.
You can find out more about the FCA’s work on their website, which is https://www.fca.org.uk/consumers/car-finance-complaints
Normally, we have to provide a response to your complaint within eight weeks, or let you know that we need longer.
The FCA paused the requirement to respond to commission 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 ensure complaints are dealt with consistently by all motor finance providers.
We’re sorry for the delay. 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.
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 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.
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:
To be able to confidently match your complaint with a historical finance agreement, we need the following information:
The extension to the pause is to give the FCA enough time to analyse the data they’re collecting from vehicle finance lenders and to assess the outcome of several legal cases on this matter. The FCA’s next steps could involve consulting on a customer compensation scheme which will take time to plan for and carry out.
When the Financial Conduct Authority 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.
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.
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.
Information on the FCA’s review of commission arrangements and the temporary measures they’ve put in place.
Summary of criteria for customers making a complaint about commission paid to dealers, and the additional support they provide.
For more information on our complaints handling procedures for complaints about commission you can download a copy of our complaints policy.