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IMPORTANT INFORMATION - MOTOR FINANCE COMMISSION


BEWARE OF SCAMMERS

The FCA has issued an alert that is has received reports of scammers pretending to be from motor finance lenders and approaching consumers to offer non-existent compensation in order to obtain personal information from them.

Please note that there is no compensation scheme currently in place and motor finance lenders are not contacting customers about compensation. There is also currently a pause in place in the handling of commission complaints until 4 December 2025.

If someone calls claiming to offer compensation, consumers should hang up immediately.

The FCA has provided additional information on how consumers can protect themselves. Please click here.


FCA Industry Redress Scheme Consultation

Following the legal certainty provided by the Supreme Court earlier in the year, on 7 October 2025, the FCA published its consultation for a proposed industry-wide scheme to compensate motor finance customers who were treated unfairly.

Its plans include the proposal to compensate customers who held agreements where a Discretionary Commission Arrangement was in place between the lender and the dealer/broker.

We can confirm that we have never used any form of Discretionary Commission Arrangement and have never allowed the broker to influence the interest rate for any potential customer.

The Supreme Court Decision provided the legal clarity that motor dealers/brokers do not owe a fiduciary duty to customers and has therefore overturned the related claims that were previously successful in the Court of Appeal.

In one of the cases, however, the Supreme Court found the relationship between the customer and the lender to be unfair under s140 of the Consumer Credit Act 1974. Such findings are case specific and based on individual facts and circumstances. The FCA is proposing to include in its redress scheme those customers who held agreements which were subject to high commission payments (greater than 35% of the total cost of credit and 10% of the loan advance), as well as in situations where there was a tied arrangement between the lender and the broker.

We can confirm that an immaterial number of our agreements between 2007-2024 are likely to be affected by the above proposals and can also confirm that tied arrangements have never existed between ourselves and our brokers.

At present, the consultation is currently underway, and the above proposals may be subject to change. Once any eventual redress scheme commences, we can confirm that we will be ready to act quickly to identify and deal with all requirements of the scheme in an orderly and professional manner.

Claims Management Companies

The FCA have stated “We aim to make any redress scheme easy to participate in without needing to use a claims management company (CMC) or law firm. Using a CMC or law firm may end up costing customers up to 30% in fees of any compensation they receive”.

If you wish to make a complaint about motor finance commission, you can raise this with us directly.

Please note that there is currently a pause for firms in the handling of commission related complaints which is currently in place until 4 December 2025, and the FCA consultation is proposing to extend this until 31 July 2026. This will give firms the time they need to complete the actions required under any redress scheme that is introduced.

Any complaint received about the payment of commission will be subject to the pause and therefore, unless instructed otherwise by the FCA, may not be responded to until the pause comes to an end.

To find out more about this subject and the action being taken by the FCA please click here.

Please read our frequently asked questions below for more information.