Information for customers
On 11 January 2024, the Financial Conduct Authority (FCA) announced a review of the vehicle finance market. This was due to the high number of customer complaints about discretionary commission arrangements, which were banned in January 2021. This announcement extended the time we have to respond to complaints about discretionary commission arrangements.
A judgment by the Court of Appeal on 25 October 2024 changed the legal standard needed for lenders like us to make customers aware of commission payments related to their finance. On 22 November 2024, we submitted an application for permission to appeal the Court of Appeal's judgment in respect of the "Hopcraft" motor finance commissions case. On 11 December 2024, we were informed that permission to appeal has been granted by the Supreme Court.
On 19 December 2024, the FCA announced that they are extending the time that motor finance lenders have to respond to complaints about any commission payments linked to motor finance. This extension will last until 4 December 2025.
Latest update
On 3 December 2025 the FCA announced an extension to the pause on lenders responding to complaints around motor finance commissions until 31 May 2026.This will give us sufficient time to be ready to respond to complaints – as well as making sure customers receive fair and timely outcomes.
What you should know:
- You can read the update from the FCA here
- An update on the extension to the pause on responding to motor finance commissions complaints – The FCA
What you should know
- If you’ve already made a complaint about discretionary commission arrangement, you don’t need to do anything else
- If you’ve been told that your motor finance wasn’t linked to a discretionary commission arrangement, you can now make a complaint about any commission payments linked to motor finance
Scope of the FCA commission review
Complain about commission
STEP 1
Email your enquiry to complaints.cbafl@closebrothers.com
Please provide the following information:
Your details
- First and last name
- Email address
- Phone number
- Current address
Your finance details
- The vehicle registration if applicable
- The finance agreement number
- When the finance was taken
- Address on the finance agreement if different from current address
STEP 2
Our complaints team will review your information.
If we find your motor finance agreement and it shows we paid a commission, we'll raise a complaint for you.
STEP 3
We’ll be in touch once the FCA have completed their industry-wide review
While they carry out their review, the FCA have put in place a pause in responding to customers complaints about commission. This will ensure complaints are dealt with fairly by all vehicle finance lenders.
The pause is currently due to end 4 December 2025.
The outcome of the FCA’s review will decide if we need to take any action on these complaints, such as customer compensation.
Frequently asked questions
Vehicle finance commission
How do I know what type of commission was linked to my agreement?
If your agreement was taken out before 28 January 2021, there may have been a discretionary commission arrangement in place with the dealer or broker who arranged your finance.
If your agreement started after this date, we may have paid a different type of commission for your vehicle finance. This is known as a ‘non-discretionary commission arrangement’ or non-DCA.
As a result of the FCA’s announcement on the 19 December, you can now make a complaint about any commission payments linked to motor finance.
I was told I didn't have a discretionary commission arrangement. Can I make a new complaint about a different type of commission?
Yes, you can make a complaint. The quickest way to make a complaint is to email complaints.cbafl@closebrothers.com.
Just so you know, we’re currently dealing with a high volume of enquiries about commission arrangements, and we’re checking each case thoroughly. It may take us longer than usual to respond to some customers.
Why do you pay commission to dealers and brokers?
We pay commission to the dealer or broker for introducing you to us and arranging your vehicle finance on our behalf.
How do I know what type of commission was linked to my agreement? How do I know what type of commission was linked to my agreement? If your agreement was taken out before 28 January 2021, there may have been a discretionary commission arrangement in place with the dealer or broker who arranged your finance.
If your agreement started after this date, we may have paid a different type of commission for your vehicle finance. This is known as a ‘non-discretionary commission arrangement’ or non-DCA.
As a result of the FCA’s announcement on the 19 December, you can now make a complaint about any commission payments linked to motor finance.
I was told I didn't have a discretionary commission arrangement. Can I make a new complaint about a different type of commission? I was told I didn't have a discretionary commission arrangement. Can I make a new complaint about a different type of commission? Yes, you can make a complaint. The quickest way to make a complaint is to email complaints.cbafl@closebrothers.com.
Just so you know, we’re currently dealing with a high volume of enquiries about commission arrangements, and we’re checking each case thoroughly. It may take us longer than usual to respond to some customers.
Why do you pay commission to dealers and brokers? Why do you pay commission to dealers and brokers? We pay commission to the dealer or broker for introducing you to us and arranging your vehicle finance on our behalf.
Does the FCA review only cover cars?
We provide finance for cars, vans, trucks, trailers and leisure vehicles (like motorhomes). All these types of vehicles are covered by the review.
Does this apply to new and used vehicles?
This applies to both new and used vehicles.
Which finance products are included in the FCA review?
The FCA’s review covers Hire Purchase, Motor Lease, Personal Contract Purchase (PCP) and Conditional Sale.
Does this apply to businesses who took out finance on a vehicle, or is it only consumers?
This applies to consumers, sole traders, and partnerships unless it is on an unregulated agreement. If you’re a limited company or LLP and you’ve taken our finance with us, you aren’t impacted by this review.
Does the review apply to customers in Northern Ireland?
Customers in Northern Ireland are treated in exactly the same way as customers in England, Scotland and Wales, which means the announcement does apply to them.
Does the review apply to customers in Ireland/Republic of Ireland?
No. There is a different regulator with different regulations in Ireland and that means customers in Ireland are not impacted by this announcement.
Does the FCA review only cover cars? We provide finance for cars, vans, trucks, trailers and leisure vehicles (like motorhomes). All these types of vehicles are covered by the review.
Does this apply to new and used vehicles? This applies to both new and used vehicles.
Which finance products are included in the FCA review? The FCA’s review covers Hire Purchase, Motor Lease, Personal Contract Purchase (PCP) and Conditional Sale.
Does this apply to businesses who took out finance on a vehicle, or is it only consumers? This applies to consumers, sole traders, and partnerships unless it is on an unregulated agreement. If you’re a limited company or LLP and you’ve taken our finance with us, you aren’t impacted by this review.
Does the review apply to customers in Northern Ireland? Customers in Northern Ireland are treated in exactly the same way as customers in England, Scotland and Wales, which means the announcement does apply to them.
Does the review apply to customers in Ireland/Republic of Ireland? No. There is a different regulator with different regulations in Ireland and that means customers in Ireland are not impacted by this announcement.
Vehicle finance commission complaints review process
Am I entitled to compensation?
At this stage, we can’t comment on any potential compensation customers may be entitled to. What we do know is on 11 January 2024, the FCA announced that they’re going to undertake work in the motor finance market.
The FCA are planning to announce the outcome of their review in May 2025, giving lenders until 4 December 2025 to implement any changes, such as a compensation scheme.
You can find out more about the FCA’s work on their website, which is https://www.fca.org.uk/consumers/car-finance-complaints
If I log a commission complaint, when will I get a final decision from you?
Normally, we have to provide a response to your complaint within eight weeks, or let you know that we need longer.
The FCA paused the requirement to respond to commission complaints while they undertake their review and decide what action, if any, will be required by firms for these complaints.
The pause is currently due to end 4 December 2025.
If you submit a relevant complaint, you’ll have to wait until after the pause has ended for a final response. The FCA has taken this step to ensure complaints are dealt with consistently by all motor finance providers.
Why haven’t you acknowledged my complaint about a commission arrangement?
We’re sorry for the delay. We’re currently dealing with a high volume of enquiries about commission arrangements, and we’re checking each case thoroughly. It may take us longer than usual to respond to some customers.
What are my options if I am not satisfied with the outcome of my complaint about a commission arrangement?
If you had a discretionary commission arrangement and received your final response letter between 12 July 2023 and 10 January 2024:
You now have the right to refer your complaint to the Financial Ombudsman Service (FOS), free of charge within 15 months of the date of your Final Response letter.
If you had a non-discretionary commission arrangement and received your Final Response letter between 21 June 2024 and 19 December 2024:
You now have the right to refer your complaint to the FOS, free of charge on or before 29 July 2026.
These are an extension to the usual six months which the FCA have introduced to allow them time to complete their review into the historical use of commission arrangements in the motor finance industry.
Find information about services from the Financial Ombudsman Service.
Why haven’t you been able to find my agreement with the information I submitted?
Our automated process for matching and verifying the identity of our customers compares the information you submit against data held in our systems at the point your agreement ended. If the information you provide doesn’t match our records, we won’t be able to find your agreement.
Common reasons for this include:
- If you’ve moved house and the address provided is not the same address we held at the time your agreement ended.
- If the complaint is not brought by a customer named on the account, for example on behalf of a relative.
- If your agreement was taken out more than six years ago, we’re far more likely to find it if you provide the agreement number.
- If you’ve changed your name and it’s not the same as what we had recorded at the time your agreement ended.
- If the agreement you had was with another part of Close Brothers, and unrelated to motor finance. For example, Close Brothers Premium Finance fund vehicle insurance policies.
To be able to confidently match your complaint with a historical finance agreement, we need the following information:
- Agreement number OR vehicle registration
- Date of birth
- Full name (as at the end of your agreement)
- Address and postcode (as at the end of your agreement)
Why are the FCA extending the pause for responding to complaints about commission?
The extension to the pause is to give the FCA enough time to analyse the data they’re collecting from vehicle finance lenders and to assess the outcome of several legal cases on this matter. The FCA’s next steps could involve consulting on a customer compensation scheme which will take time to plan for and carry out.
Am I entitled to compensation? At this stage, we can’t comment on any potential compensation customers may be entitled to. What we do know is on 11 January 2024, the FCA announced that they’re going to undertake work in the motor finance market.
The FCA are planning to announce the outcome of their review in May 2025, giving lenders until 4 December 2025 to implement any changes, such as a compensation scheme.
You can find out more about the FCA’s work on their website, which is https://www.fca.org.uk/consumers/car-finance-complaints
If I log a commission complaint, when will I get a final decision from you? Normally, we have to provide a response to your complaint within eight weeks, or let you know that we need longer.
The FCA paused the requirement to respond to commission complaints while they undertake their review and decide what action, if any, will be required by firms for these complaints.
The pause is currently due to end 4 December 2025.
If you submit a relevant complaint, you’ll have to wait until after the pause has ended for a final response. The FCA has taken this step to ensure complaints are dealt with consistently by all motor finance providers.
Why haven’t you acknowledged my complaint about a commission arrangement? We’re sorry for the delay. We’re currently dealing with a high volume of enquiries about commission arrangements, and we’re checking each case thoroughly. It may take us longer than usual to respond to some customers.
What are my options if I am not satisfied with the outcome of my complaint about a commission arrangement? If you had a discretionary commission arrangement and received your final response letter between 12 July 2023 and 10 January 2024:
You now have the right to refer your complaint to the Financial Ombudsman Service (FOS), free of charge within 15 months of the date of your Final Response letter.
If you had a non-discretionary commission arrangement and received your Final Response letter between 21 June 2024 and 19 December 2024:
You now have the right to refer your complaint to the FOS, free of charge on or before 29 July 2026.
These are an extension to the usual six months which the FCA have introduced to allow them time to complete their review into the historical use of commission arrangements in the motor finance industry.
Find information about services from the Financial Ombudsman Service.
Why haven’t you been able to find my agreement with the information I submitted? Our automated process for matching and verifying the identity of our customers compares the information you submit against data held in our systems at the point your agreement ended. If the information you provide doesn’t match our records, we won’t be able to find your agreement.
Common reasons for this include:
- If you’ve moved house and the address provided is not the same address we held at the time your agreement ended.
- If the complaint is not brought by a customer named on the account, for example on behalf of a relative.
- If your agreement was taken out more than six years ago, we’re far more likely to find it if you provide the agreement number.
- If you’ve changed your name and it’s not the same as what we had recorded at the time your agreement ended.
- If the agreement you had was with another part of Close Brothers, and unrelated to motor finance. For example, Close Brothers Premium Finance fund vehicle insurance policies.
To be able to confidently match your complaint with a historical finance agreement, we need the following information:
- Agreement number OR vehicle registration
- Date of birth
- Full name (as at the end of your agreement)
- Address and postcode (as at the end of your agreement)
Why are the FCA extending the pause for responding to complaints about commission? The extension to the pause is to give the FCA enough time to analyse the data they’re collecting from vehicle finance lenders and to assess the outcome of several legal cases on this matter. The FCA’s next steps could involve consulting on a customer compensation scheme which will take time to plan for and carry out.
Free and independent advice
FCA commission review
Information on the FCA’s review of commission arrangements and the temporary measures they’ve put in place.
Financial Ombudsman Service (FOS)
Summary of criteria for customers making a complaint about commission paid to dealers, and the additional support they provide.
