We’ve made it easier for your customers to give consent for commission payments. When your customer goes through the e-sign journey, they’ll also see the commission disclosure form. All you need to do is propose the customer to us as normal. Keep reading below for more information.
Due to a judgment handed down by the Court of Appeal on 25 October 2024, we now require explicit consent from the customer that they agree to you being paid a commission for arranging their vehicle finance.
To meet this requirement, we must set out to the customer the following:
For more information on your responsibilities as a Credit Broker, including some example wording you might want to incorporate into your own disclosure documents.
What do you need to do?
As part of this new requirement, we need to obtain consent from the customer to pay you a commission for setting up their vehicle finance.
To do this, we’ve added a commission disclosure form to our existing electronic signing journey – making this as quick and easy as possible for you and the customer. If your customer chooses to wet sign, you’ll need to print out the commission disclosure form for them, alongside the key facts, finance agreement, and terms and conditions.
For both e-signature and wet sign (handwritten) journeys, your customer must be presented with the commission disclosure form to sign first, before moving on to sign the agreement.
You can propose customers to us as normal, but there’s an extra step for detailed disclosure for us to capture that the customer’s understands how we calculate commission and that they agree to the amount of commission you’ll earn.
Let’s look at the journey:
If you need help at any stage, please contact your account manager or partner hub. Contact details can be found here.
You should create your own Initial Disclosure Document that suits your business needs to incorporate into your own sales process.
To see our example wording which you could incorporate into your own disclosure documents, download our commission disclosure factsheet.
The customer named on the agreement needs to sign a commission disclosure form. Their name needs to match exactly what was given on the legal agreement.
If the agreement is with more than one person (joint hirers, partnerships or limited companies), each person named on the agreement will need to complete separate forms.
If you use a panel of lenders who all calculate commission differently, your initial disclosure can include a summary of how commission is typically calculated. For example: The commission payable is a one-off payment that is either a fixed fee, or a fixed percentage of the amount that you borrow.
We recognise that the new requirement for detailed disclosure – sharing the amount of commission and how it’s calculated – may only be possible (in some cases) at the point a lender is selected, at application stage.
This is why it's important to explain commission to the customer at the pre-quote stage. You should also explain that the customer will know the final commission amount before they enter into the vehicle finance agreement.
The final disclosure is the only part of the journey that we control as a lender. This is our evidence that fully informed consent has been captured and is what is sent to the customer alongside their credit agreement for their records.
If a customer doesn’t agree to you receiving a commission for setting up their vehicle finance agreement, we’re unable to proceed with their application. They'll need to find an alternative way of paying for their vehicle.
We’re unable to make commission adjustments. In this instance, the customer will need to find an alternative way of paying for their vehicle.
Due to a judgment handed down by the Court of Appeal on 25 October 2024, we now require explicit consent from the customer that they agree to you being paid a commission for arranging their vehicle finance.
To meet this requirement, we must set out to the customer the following:
Before their vehicle finance can be set up, the customer must sign a form to say they understand the relationship between us, that they agree to you receiving commission and the amount you’ll receive.
We’re unable to comment on any action other lenders may or may not take.
As this is now a legal requirement, we need all our partners to explicitly disclose commission to the customer. If you don’t want to do this, unfortunately we’re unable to continue working with you.
Yes. The law has changed so you’ll need to disclose commission on any vehicle finance agreement. This legal standard has higher authority than existing regulation.
You can explain this to your customer, but you will still need to take customers through our new commission disclosure process. This is to make sure your customer understands the business relationship between us and you.
No, you don’t need to use this form any longer and it will no longer be available on our website going forward. If you’ve saved a link to the document on your desktop you can now delete it. We’ve made it easier for your customers to give consent for commission payments as part of our automated proposal and e-sign journeys.
No, other than including these commission disclosure touchpoints in our application and signature journeys, all other parts of our process remain the same.
You will still need to properly undertake any other regulatory and legal disclosures as part of the customer journey (for example data protection or other obligations under CONC).