The FCA has described a discretionary commission arrangement as an arrangement between lenders and brokers that allowed the broker to adjust the interest rates offered to customers. Typically, the higher the interest rate, the more commission the broker received. This practice was banned by the FCA in 2021; however, they are now undertaking a review of the industry to understand whether there has been a widespread failure to comply with relevant requirements, resulting in financial loss or harm to consumers.

The Supreme Court judgment was handed down on 1 August 2025. Following this, the Financial Conduct Authority (“FCA”) issued a statement confirming that they will be consulting on a motor finance compensation scheme. The full announcement can be found here: FCA Announcement.

If you have already made a complaint in relation to commission, then you don’t need to do anything further and your complaint remains paused until at least 4 December 2025.

If you have not made a complaint and you wish to do so, you can do this by clicking the button below. 

Once the pause is lifted (due 4 December 2025), in the weeks that follow you will receive a final response from us in relation to your complaint. If you’re unhappy with our final response, you’re able to take your complaint to the Financial Ombudsman Service (“FOS”). Usually, you have six months from the date of our final response letter to refer your complaint, however, as a result of the pause to complaint handling, this has been extended by up to 15 months.

For further information, you can visit the announcement on the FCA’s website here.