Motor Finance Commission

Motor finance commissions

What’s going on in the industry, and how to find out if your motor finance agreement may be affected.

Updated: 14/05/2026

At ALD Automotive we work closely with partners to offer mobility solutions to our customers, including vehicle finance. The 2025 Supreme Court ruling concerning car dealers and third-party lenders in relation to motor finance was a significant moment for our industry.

In January 2024 the FCA shared that they would review motor finance arrangements and how these have been handled across the motor finance industry today and in the past.

On 25 November 2024, the Court of Appeal ruled that commission from a lender providing motor finance should be disclosed, and the customer should give informed consent to the payment. This decision was appealed to the Supreme Court, and the Supreme Court ruling was announced on 1 August 2025.

In response to the ruling, the Financial Conduct Authority (FCA) started consultation on their proposed redress scheme on 7 October 2025 which closed on 12 December 2025.

On 30 March 2026, the FCA published policy statement PS26/3, which outlines the timeline and rules of the industry-wide redress scheme for in-scope motor finance agreements. The policy statement can be viewed here.

On 8 May 2026, the FCA published a statement about the legal challenges they have received and what they are doing to resolve these. You can read the statement here.

What the FCA’s latest statement means for affected customers

The FCA introduced a motor finance compensation scheme so customers could receive compensation fairly and quickly.
Some lenders, as well as a consumer group, have legally challenged the scheme. Affected customers should have begun to receive communications from lenders from 30th June 2026, but this is now on pause with no revised timeline yet.
Because of this legal action, compensation payments are no longer expected to start before the end of 2026.
We’ll update you when we can, but we are reliant on the information shared by the FCA and the courts, so are unlikely to have much to share for some time.

What can I do next?

If you've already contacted us and received confirmation that you're currently in scope of the FCA complaint pause, you don't need to do anything further at this time.
We'll reach out to you as soon as we have any updates or once we have issued a final response to your complaint.
Depending on when you complained to us, you may have more time to refer complaints to the Financial Ombudsman when a final response is issued. The timelines will be confirmed in the final response letter we send you.
If you do need to contact us about an existing commission query or complaint, the most effective way is by responding to our latest email communication to you. This ensures that the right team will see and address your query. We’ll reply as soon as we can, but we're experiencing a high volume of requests, so thank you in advance for your patience. We will not be able to confirm potential compensation details on any individual requests ahead of the scheme starting.
If you haven't contacted us before regarding a motor finance commission complaint but wish to do so now, you can follow the steps below.

Submitting a motor finance commission information request or complaint

The FCA’s review and redress scheme cover motor finance agreements where certain commission arrangements were in place. If you want to check whether your agreement is in scope of the Motor Finance Compensation Scheme, or wish to make a complaint relating to motor finance commission, please submit a motor finance information request or complaint here.

For any complaints that do not relate to the FCA’s motor finance commission redress scheme, please visit our Complaints page.

What happens once we have your information request or complaint?

Completing our online form is the most effective way to submit your request or complaint. This will enable us to create a case file and locate your agreement, and advise if you do have an agreement in potential scope of the FCA’s Motor Finance Compensation Scheme. We will not be able to confirm any potential compensation at this stage.

We’ll reply to you as soon as we can, but we are experiencing a high volume of requests, so thank you in advance for your patience.

Motor commission finance complaints FAQs

What is a redress scam and how do I know if I’m being contacted by a scammer and not ALD Automotive? The FCA have identified that scammers are attempting to impersonate firms like ALD Automotive to get your personal details, like date of birth and banking information, under the guise of arranging compensation payouts. Important: - If someone calls claiming to offer compensation, customers should hang up immediately and not share any information. - When the redress scheme is in effect, ALD Automotive will communicate any instructions in writing. If you receive an email or letter that looks suspicious or isn't from an official @aldautomotive.com mailbox or a letter with our branding and postal address on envelopes and letter headed paper\*, please do not respond. For more information from the FCA on how to protect yourself from scams, or how to report scam calls to Ofcom, click [here](targetBlank:https://www.fca.org.uk/consumers/protect-yourself-scams). \*Our registered address is: ALD Automotive Limited, Oakwood Drive, Emersons Green, Bristol, BS16 7LB.What is commission? Commission is usually a payment, in this case a payment made by the finance provider to a dealer or broker when a customer takes out a finance agreement.What is the Financial Conduct Authority (FCA) review that’s happening? In January 2024 the Financial Conduct Authority (FCA) shared that it would review motor finance DCAs, and how these have been handled across the motor finance industry, today and in the past. On 7 October 2025, the FCA began consultation on a redress scheme which closed on 12 December 2025. On 30 March 2026 the FCA published policy statement PS 26/3 which confirmed the industry-wide redress scheme for in-scope motor finance agreements, and outlined the timeline and rules. On 8 May 2026, the FCA published a statement about the legal challenges they have received and what they are doing to resolve these. This has caused a delay to the current timeline of the scheme. You can [read the statement here](targetBlank:https://www.fca.org.uk/news/statements/legal-challenges-motor-finance-compensation-scheme-update-firms-consumers). Was commission applied to my agreement? You don’t need to know what type of commission arrangement applied to your agreement for us to review it. The FCA has reviewed different types of motor finance commission arrangement across the industry. We will review your agreement and contact you if it is affected. You may have heard ‘DCA’ or ‘Discretionary Commission Arrangement’ mentioned. These form part of the FCA’s redress scheme scope, alongside some other arrangements. If you would like more information about your agreement or wish to make a complaint, you can [complete our online form](targetSelf:https://www.aldautomotive.co.uk/en-gb/motor-finance-commission-requests/), You can read more about the timelines on the [FCA's website](targetBlank:https://www.fca.org.uk/consumers/car-finance-complaints). What commission agreements are in scope of the FCA’s redress scheme? The redress scheme covers three different types of arrangement: - Discretionary Commission Arrangements: Car dealers or brokers could set or adjust the interest rate on a car finance agreement, with higher interest rates resulting in higher commission. These were banned from 28 January 2021. - Tied Arrangements: A contract where a broker (e.g., a car dealer) was restricted to offering finance from only one lender or was required to offer that lender's product first. - High Commission Arrangement: A broker (e.g., car dealer) receives commission equal to or greater than 39% of the total cost of credit and 10% of the loan amount, and this was not properly disclosed. You don’t need to know what type of commission arrangement applied to your agreement for us to review it. How long will it take for you to confirm whether my agreement is affected? On 8th May 2026, the FCA released a statement on the legal challenges they have received and what they are doing to resolve these. This has caused a delay to the current timeline of the scheme. You can [read the statement here.](targetBlank:https://www.fca.org.uk/news/statements/legal-challenges-motor-finance-compensation-scheme-update-firms-consumers) We can complete a check to confirm if you had a credit agreement in potential scope of the FCA’s Motor Finance Compensation Scheme. To complete this check, please [submit a request or complaint here](targetSelf:/en-gb/motor-finance-commission-requests/). Once the position with the scheme is confirmed, we will contact any customers who have logged a complaint to provide an update. What can I do if I have a commission-related complaint about my hire agreement? The FCA have confirmed that leasing (also known as hire) agreements will be excluded from the redress scheme. If you have a specific commission complaint regarding your leasing or hire agreement, we'll be able to look into your concerns and issue a response to you within eight weeks. If you’ve been told that your agreement sits outside the scope of the FCA’s redress scheme rules but now have additional complaints that are not covered by the final response sent to you, please respond to our latest communication by email and we will see how we can support you. Alternatively, please submit any new [motor finance information requests or complaints here](targetSelf:https://www.aldautomotive.co.uk/en-gb/motor-finance-commission-requests/). You have rejected my commission complaint as I had a leasing or hire agreement, what can I do now? The FCA have confirmed that leasing (also known as hire) agreements will be excluded from the redress scheme. Any hire agreements will sit outside the scope of those rules. Before issuing a final response, we’ll have checked your agreement and considered any concerns raised. The final response will detail the outcome, what was considered, and your rights to refer your complaint onwards. If you've received a final response but now have additional complaints that are not covered by the final response, please respond to our latest communication by email and we will see how we can support you. Will I get a copy of the information I share with you if I complete the online form? Yes. You'll receive an auto-acknowledgement with the details after submitting your completed form, so you know the system has received it. This email will be encrypted so you can be assured that your data is protected. Your details will then be reviewed by the team and they will contact you directly to confirm if you have a commission arrangement that is in scope of the FCA redress scheme. Does it matter when I took out my agreement? The date your agreement was taken out will be relevant as the FCA’s scheme covers motor finance agreements entered into between 6 April 2007 and 1 November 2024. . We'll review your agreement and contact you if it is affected. You can submit a motor finance information request or complaint [here.](targetSelf:/en-gb/motor-finance-commission-requests/) Can I submit an information request or complaint if I don't have a copy of my agreement, or if I took out my agreement a long time ago? We’ll need some information from you to find your agreement, including your name, address at the time you signed the agreement, and your date of birth. It would help if you could share: - Vehicle make and model - Account or agreement number - Registration number - Dealer or Broker name - When the vehicle was delivered to you (can be approximate) You can submit a motor finance information request or complaint [here](targetSelf:https://www.aldautomotive.co.uk/en-gb/motor-finance-commission-requests/). Can I get someone I trust to manage this for me? Yes. Please call us on 0117 908 6589 to give us the full name of the person you want to authorise to deal with your request or complaint. We can then deal with this person for you. To safeguard you, they’ll need to give your personal details and their own to discuss your request or complaint. Can I put in an information request or complain about an agreement held by someone who has died? Yes, you can if you are an executor of the estate or close relation. We’ll ask you to share some supporting documentation, such as a copy of the death certificate and some details about the customer to allow us to identify and verify the correct agreement. Please fill out the form with the customer’s information and add a note in the ‘Any additional information’ field, along with your own name and contact details. This will help us to understand the situation and support you appropriately. You can submit a motor finance information request or complaint [here](targetSelf:https://www.aldautomotive.co.uk/en-gb/motor-finance-commission-requests/).How do I contact the Motor Finance Commissions Redress team directly with a query? We’re currently setting up our dedicated redress team within the operational window provided by the FCA and will share contact details with the team once we’re ready. If you have already registered your complaint with us, you do not need to do anything further, as we will contact you with any updates. We will not be able to confirm potential compensation details on any individual requests ahead of the scheme starting. If you do still need to contact us about an existing commission query or complaint, the most effective way is by responding to our latest email communication to you. This ensures that the right team will see and address your query. If you haven't already contacted us, you can submit a new motor finance information request or complaint [here.](targetSelf:/en-gb/motor-finance-commission-requests/) What are you doing to improve customer understanding of commission? ALD Automotive carefully consider all developments and have made changes to how we onboard our customers. Since late 2024, we provide a declaration of commission and informed customer consent to all customers who enter into a finance agreement with us via a broker or partner, and have implemented a consent form which has to be signed by all customers confirming their understanding of the commission element of their finance agreement. As always, our focus is on doing the right thing – ensuring fair outcomes for customers and supporting a transparent, well-regulated motor finance market.