FAQs
What is a discretionary commission?
A discretionary commission is an often-hidden commission agreed between your finance company and credit brokers (often the car dealers) which incentivised them to charge customers more interest than the lender required and make higher profits.
When did the Financial Conduct Authority (FCA) ban discretionary commission?
The FCA banned discretionary commission in 2021, to remove the incentive for credit brokers to increase the interest rate that a customer pays for their motor finance.
How do I make a claim about my finance?
You are on the right track by being on our website which explains, if you may be eligible to make a claim and how to make a claim.
Does the discretionary commission reclaim apply only to cars?
No, this can include not only cars but vans, camper vans, and motorbikes. This may also be extended to other areas in the future.
My vehicle was for business purposes, can I claim?
It depends on whether the vehicle was primarily for business purposes or personal use. If mainly for personal use, then, yes.
My vehicle was purchased via Personal Contract Payments (PCP), can I claim?
Yes, these claims are in scope.
My vehicle was purchased via Hire Purchase, can I claim?
Yes, these claims are in scope.
My contract was for Personal Contract Hire, can I claim?
No, this is leasing a car, and out of scope of the compensation scheme.
My finance agreement was 0%, can I claim?
No, there wasn’t any discretionary commission on your finance agreement.
Can I make more than one claim, if I have had more than one agreement?
Yes, in theory you can claim for each agreement.
My finance has finished, can I claim?
Yes, you can.
I’m still paying my finance, can I claim?
Yes, but please be aware that your finance company may set off any remaining finance against your compensation amount.
I paid the finance, but it was in someone else’s name can I claim?
No, sorry only the person on the finance agreement can make a claim.
My finance agreement was in joint names, can I claim?
Yes, as long as you have the permission of the second person.
I want to make a claim for someone who has passed away, what do I do?
Yes, provided you are the executor of the estate.
Is there a pause on finance companies dealing with discretionary commission complaints?
Yes, there is a pause whilst the FCA further investigates if there has been widespread misconduct in the motor finance industry and consumers have lost out. The pause applies until December 2025.
Why and how are the Financial Conduct Authority (FCA) investigating discretionary commission?
The FCA are using their powers under S166 of the Financial Services and Markets Act 2000, to see if there has been historic widespread misconduct in regard to motor finance commission arrangements. If they find widespread misconduct, they will identify the best action to take.
Do we believe the Financial Conduct Authority (FCA) will find widespread misconduct in motor finance agreements?
In short, yes, not all motor finance agreements had discretionary commission, but we believe that where an agreement had discretionary commission this was not generally advised to customers which is unfair and likely to lead to compensation awards. We also believe that discretionary commission arrangements in general are unfair.
Are there any companies which have never used discretionary commission agreements/arrangements?
Not all companies used discretionary commission arrangements.
What are finance companies doing about discretionary commission arrangements?
We have seen a number of finance firms put aside in excess of £1,000,000,000 to deal with potential compensation claims.
How long will the claims process take?
It is not possible to give you an exact time frame as there are a number of factors which will impact this:-
– The outcome of the Supreme Court case which is expected in April 2025.
– How the FCA interpret the Supreme Court outcome and the provision of rules and guidance to the Finance Companies.
– The efficiency of the Finance Companies.
Can I be blacklisted for complaining?
No, this is not allowed.
The Financial Conduct Authority stipulates ‘We would like to confirm that anyone submitting a claim won’t be ‘blacklisted’ by a company or have claims included in any product application assessment (even with linked firms)’.