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Car finance commission complaints: discretionary commission arrangements

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Quick answer: If your car finance before 28 January 2021 included a discretionary commission arrangement (DCA), you may be owed compensation — complain to the lender now even though the FCA redress scheme is delayed until at least 2027. Free template routes exist via the Financial Ombudsman.

The FCA found widespread use of DCAs where brokers could set customer interest rates to earn higher commission. A redress scheme is likely but delayed — complaining now preserves your place in the queue and stops limitation arguments.

Do you have a DCA case?

Check finance agreements from before 28 January 2021. If a broker could adjust your interest rate within a range and earned more commission at higher rates, it may be a DCA.

Even post-2021 agreements may have unfair commission structures — each case turns on documents.

How to complain

Write to the lender with agreement details, dates, and why commission was not fairly disclosed. Ask for copies of commission statements if missing.

If rejected or ignored after eight weeks, escalate to the Financial Ombudsman Service.

Common questions

Should I use a claims management company?

No — complaints are free direct to lenders and the Ombudsman. CMCs take 20–40% of any redress for work you can do yourself.

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