On 11 January 2024, the Financial Conduct Authority (FCA) announced that it’ll be carrying out a review into discretionary commission arrangements within the motor finance industry.
What is a discretionary commission arrangement?
A discretionary commission arrangement (or DCA) is where a lender allows a dealer or broker to select the interest rate charged to the customer and where the commission paid is linked to the interest rate charged.
The FCA banned discretionary commission arrangements in January 2021.
Does this apply to you?
If you took out car finance to buy a motor vehicle, for example a car, van or motorbike, between April 2007 and 28 January 2021 (this includes hire purchase agreements, such as Personal Contract Purchases) and if your lender and dealer/broker had a discretionary commission arrangement.
Make a complaint
If you want to make a discretionary commission arrangement complaint, you can do so by contacting us by the following:
Complete our online form
We’ll register your complaint and contact you in due course, after the May FCA deadline.
Write to us
Please send your written complaint to DCA Complaints, MotoNovo Finance, One Central Square, Cardiff, CF10 1FS.
When you write to us, please include:
- Agreement Number/Vehicle Registration
- First Name and Surname
- Date of Birth
- Email address
- Address and postcode
- Vehicle Make and model
- Details of your complaint
- When did you purchase the vehicle?
- How can we make this right?
The complaints process
While the FCA is carrying out their review, they’ve extended the current pause on the usual 8-week deadline for us to respond to complaints where there was a discretionary commission arrangement in place. You can still complain, but the FCA are intending to announce the findings of their review and next steps in May 2025.
The deadline that finance providers have to respond to car finance complaints where there was a discretionary commission arrangement in place has been extended to after 4 December 2025.
The FCA are also giving consumers longer to refer a complaint to the Financial Ombudsman. Instead of the usual 6 months:
- if you're sent a final response between 12 July 2023 and 29 April 2025, you'll have until 29 July 2026 to take your complaint to the Financial Ombudsman.
- if you're sent a final response between 30 April 2025 and 29 January 2026, you'll have 15 months from the date of the final response to refer your complaint to the Financial Ombudsman.
To find out more information about the FCA review of discretionary commission arrangements, please visit their website.
