Representative Example: You could borrow £10,699 over 60 months with an initial payment of £495.89 (including £199 Admin Fee) followed by 58 monthly payments of £296.89 with a final payment of £495.89 (including optional £199 Option to Purchase Fee). Total amount repayable will be £19,012,40. 26.1% APR, annual interest rate (fixed) 13.3%.
The Financial Conduct Authority (FCA) has been looking into historical commission arrangements in the motor finance market. In many cases, lenders — including ourselves and others — paid brokers a commission for arranging a loan. In some situations, these commission payments were not clearly told to customers. Where that’s the case, the FCA has said this could be considered unfair.
In August 2025, the Supreme Court confirmed that commission payments are not automatically unlawful. However, if commission arrangements were not properly disclosed, and this resulted in customer harm, a complaint may be justified.
The FCA is currently asking for views on a compensation scheme that would make it easier for affected customers to receive compensation, where appropriate. The scheme would be free to use, and customers would not need to use a claims management company (CMC) or a solicitor to take part.
The proposed scheme would likely cover discretionary commission arrangements (DCA) — these are arrangements where a broker was allowed to change the interest rate offered to the customer. The higher the interest rate, the higher the broker’s commission. The FCA may also include some other types of commission arrangements in the scheme.
AutoMoney has never entered into DCAs.
This means that brokers or dealers were never allowed to vary the interest rate you were offered in exchange for higher commission. We have always used fixed and transparent commission structures and continue to ensure our practices are aligned with FCA rules and expectations.
In a non-discretionary arrangement (non-DCA) (which is how we work), brokers or dealers receive a fixed commission that does not change based on the interest rate charged to you. This means you were never at risk of being offered a higher rate simply to increase commission.
The FCA plans to publish a formal consultation in October 2025. If the scheme goes ahead, the first compensation payments would likely begin in 2026.
For more information, please visit the FCA’s website.
Based on the FCA’s current work, if compensation is due, most payments are expected to be small — often under £950 per agreement (including interest). However, the exact amount, if any, will depend on your individual circumstances and whether the FCA includes your type of commission arrangement in the scheme.
The FCA has indicated that a fair and proportionate interest rate may be applied — possibly around 3% per year — if compensation is awarded.
If you believe your finance agreement may have involved a commission that wasn’t clearly disclosed, and you think you paid too much as a result, you can make a complaint to us as set out above.
If your complaint relates to a non-DCA and is received between 26 October 2024 and 4 December 2025, we may need more time to investigate it.
During this period, we are not required to send a final response within the usual 8-week timeframe.
If we do issue a final response to your complaint, you will have 15 months from the date of our response letter, or until 29 July 2026 (whichever is later), to refer your complaint to the Financial Ombudsman Service (FOS). These timelines will be clearly explained in our response.
This extension has been introduced by the FCA so that complaints can be handled fairly and consistently while its review continues. You will not lose your right to complain or to take your case to the FOS because of these temporary timelines.
For more information, please visit the FCA’s website.
No — you do not need to use a CMC or solicitor to complain or to take part in the proposed compensation scheme. It’s free and straightforward to complain directly to us.
Using a CMC could mean paying fees of up to 30% of any compensation you might get — even though you can do everything yourself for free.
If you’ve already signed up with a CMC and change your mind, you can usually cancel the agreement, but you may be charged for any work already carried out.
We’ve been made aware of scammers calling people pretending to be motor finance lenders, offering fake compensation. These callers may ask for personal or banking details.
At present, we are not contacting customers about any compensation.
If this changes in the future (for example, if required under an FCA scheme), we will confirm the details in writing first and provide a secure way for you to verify the contact is genuine before you share any information.
If you receive an unexpected call offering compensation right now:
For more advice on spotting and avoiding scams, visit the FCA’s official guide.
If you’re unsure about anything or need help making a complaint, feel free to contact us. You can also get free and impartial support from:
We understand this topic can be confusing, and we're committed to being transparent and supporting our customers through it. If you have any concerns or questions about your agreement with us, don’t hesitate to get in touch.