Motor Finance Commission
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If you borrow money to finance a motor vehicle, your finance provider may have paid commission to your broker or motor dealer for arranging it.
This commission may have been paid under different types of arrangements, including discretionary commission arrangements (DCAs), high commission arrangements, or tied arrangements where a broker was restricted in which lenders they could use. To find out more about these arrangements, see our Frequently Asked Questions (FAQs) below.
Following concerns about how these arrangements could affect customers, the Financial Conduct Authority (FCA) stepped in to address the issue. This included banning DCAs from 28 January 2021. Further developments, including court decisions on commission disclosure, led to the FCA launching an industry-wide motor finance compensation scheme.
Important update: The scheme is being legally challenged which will delay any compensation payments. We don’t have any more information right now because the court hearings aren’t expected to take place before October 2026.
You can find out about the key milestones below. Clicking on the date will give you more detail.
If you’d like more information, you can find it on the FCA website.
11 January 2024 – The FCA announced they’d carry out a detailed review of DCAs.
This would look at whether DCAs led to poor practices which resulted in customers losing out. While the FCA completed this work, they said finance providers didn’t have to respond to complaints relating to DCAs within the usual 8-week timeline. Customers would also have longer to take their DCA related complaint to the Financial Ombudsman Service (FOS).
25 October 2024 – The Court of Appeal ruled on 3 cases involving car finance.
The Court decided it was against the law for the car dealers involved to have been paid commission without first getting informed consent. The decision said dealers should have given customers relevant information about the commission payment and asked their permission for it to be paid. The ruling was later challenged, and permission was granted for it to be appealed at the Supreme Court.
19 December 2024 – The FCA provided an update about complaints.
Following the Court of Appeal ruling the FCA extended the scope of the pause which gave finance providers longer than usual to respond to complaints. This meant the pause applied to any type of motor finance commission, not just DCAs.
1 August 2025 – Supreme Court ruling announced.
Following an appeal hearing held on 1-3 April 2025, the Supreme Court overturned the Court of Appeal’s ruling in two of the three cases presented to them. The ruling stated that commission payments can be legal in many cases. However, where a commission arrangement wasn’t properly disclosed to the customer, this could be considered unfair and therefore unlawful.
7 October 2025 – The FCA published a consultation paper about a redress scheme.
In response to the Supreme Court Ruling, the FCA published a Consultation Paper setting out their plans for a compensation scheme. The consultation period gave interested parties an opportunity to have their say.
4 December 2025 – The FCA provided an update about leasing agreements and complaints.
This further extended the pause which gives finance providers longer than the usual 8 weeks to respond to motor finance commission complaints. You can find more information about this in the FAQs below.
It also confirmed leasing agreements won’t be included.
30 March 2026 – FCA publishes details of its motor finance compensation scheme.
This set out rules on how lenders must handle motor finance commission complaints.
1 May 2026 – The FCA announce that the scheme is being legally challenged
This means customers will have to wait longer for compensation. It could also mean the FCA decide not to go ahead with the scheme. No decision will be made until after the court hearing. This is unlikely to take place before October 2026.
What does this mean to me?
If you took out an agreement between 6 April 2007 and 1 November 2024, and we paid your motor dealer or broker a commission, you may be entitled to compensation.
If you think your motor finance agreement with us may have included a commission payment, or would like us to check, you can complain. Create our online motor finance commission information request form.
Other ways to complain are detailed in our FAQs below.
If you’ve got a leasing or a contract hire agreement, the FCA have confirmed that complaints about this type of finance won’t be included in any compensation scheme. This means you won’t be eligible to take part and won’t get compensation through the scheme.
We’ve answered other common questions in our FAQs below. Just click on the question to see the answer.
Frequently Asked Questions
General Information
What’s a Discretionary Commission Arrangement (DCA)?
This is where a finance provider allowed a broker or motor dealer to decide, within an agreed range, what interest rate would be offered to its customers. A payment for arranging the finance was then made to the broker or motor dealer that was linked to the interest rate. The amount paid varied depending on how high or low the interest rate was.
Commission payments could also be made based on different arrangements which weren’t DCAs. These are sometimes referred to as non-DCA arrangements.
What happens if I’ve told you I have more than one agreement?
Whether your agreements are open or closed, we’ll review each one individually. You may receive separate communications for each agreement at different times.
What if I need to update my contact information?
Call us on 0800 018 9090 as soon as possible. If we’ve got your current contact details, it means we can make sure you receive timely updates.
I’ve already contacted you about my commission arrangement. Do I need to do anything else?
No. If you’ve contacted us, you’ll have received an acknowledgment. You don’t need to do anything else. We’ll be in touch as soon as we have any further updates to share.
Making a Complaint or Enquiry
How do I make a complaint?
You can complain by:
- Completing our online motor commission information request form. This asks for all the information we need. Create a motor commission information request form.
- Calling us on 0800 018 9090. We’re open 9:00am to 5:00pm Monday to Friday excluding Bank Holidays.
- Writing to us at Northridge Finance, 1 Donegall Square South, Belfast, BT1 5LR.
If you’re calling or writing, you’ll need to give us as much of the following information as you can. This will help us find your agreement. Don’t worry if you don’t have it all, just give as much as you can. If we need anything more, we’ll be in touch.
- Your full name at the time you took the agreement with us, including any middle names and any name changes (e.g., due to marriage).
- Your address at the time you took the agreement with us, including your postcode.
- Your email address.
- Your contact number at the time you took the agreement with us.
- Your date of birth (DD/MM/YYYY).
- The 12-digit Northridge agreement number.
- The approximate date you took out the agreement.
- The name and location of the dealer or broker that arranged the finance.
- The registration number of the vehicle that was financed, including any changes (e.g. personalised plates).
- The make and model of the vehicle that was financed.
Can I check if my motor finance agreement had a commission payment?
Yes, but we’ll treat your enquiry as a complaint and follow our complaints process. You can ask us by:
- Completing our online motor commission information request form. This asks for all the information we need. Create a motor commission information request form.
- Calling us on 0800 018 9090. We’re open 9:00am to 5:00pm Monday to Friday excluding Bank Holidays.
- Writing to us at Northridge Finance, 1 Donegall Square South, Belfast, BT1 5LR.
If you’re calling or writing, you’ll need to give us the information detailed in the above FAQ about how to complain.
What happens after I contact you about motor finance commission?
- We’ll record a complaint on our system and send you a confirmation. This gives you a Complaint Reference Number which you’ll need to use when contacting us.
- We’ll check the information you’ve given us to see whether any of your agreements with us had a motor finance commission payment.
- If we don’t have enough information to find your agreement, we’ll get in touch. We’ll tell you what we need and how you can send it to us.
- Once we’ve completed our checks, we’ll let you know what the next steps are.
Do I need to make a separate complaint if I’ve already made an enquiry?
No. We’ll treat your enquiry as a complaint. There’s no need for you to make a separate complaint.
How long will it take for you to respond to my complaint?
We won’t know until after the court hearings have taken place and the FCA provides an update about the future of the compensation scheme.
Remember, this only applies to motor finance commission complaints. We’ll still respond to all other complaints within the usual 8-week timeline.
What can I do if I am unhappy with your response to my motor finance commission complaint?
You can ask the Financial Ombudsman Service (FOS) to look at your complaint.
Find out more about how to take your complaint to the Financial Ombudsman Service (FOS)
The FCA’s Motor Finance Commission Redress Scheme
What’s a motor finance commission redress scheme?
It’s an FCA scheme for customers who may have paid too much for car finance because of hidden or unfair commission arrangements. As the scheme is facing legal challenges it’s unclear whether it’ll go ahead. Its aim is to put things right for customers without them having to go through a lengthy complaint or legal process. The FCA have confirmed the scheme and set out how firms must identify eligible customers and calculate compensation.
I’ve got a Leasing Agreement – why’s it been excluded from the scheme?
A lease is a rental agreement where you pay to use the car for a set period. You don’t own it and there’s no credit involved. As the scheme is designed to address issues with credit-based products, lease agreements aren’t included.
Will I receive compensation?
If your agreement is eligible for the scheme, we’ll send you details of any compensation due.
We won’t know until after the outcome of the legal challenges. Until then, the scheme has been paused.
Using a Third Party
What’s a Professional Representative (PR)?
This is an organisation you’ve given permission to act on your behalf, such as a Claims Management Company (CMC) or a law firm.
Can I use a Professional Representative (PR)?
Yes, but make sure you find out about any costs before signing up as they’re likely to take a percentage of any compensation you get. Remember, you don’t need to use a PR as you can complain directly to us for free.
To find out what to expect if you decide to use a PR, click on the links below. These also tell you how to complain if you’re not happy about a PR you’ve used.
Can I use more than one Professional Representative (PR)?
You should only appoint one PR for each agreement you want to complain about. Bear in mind that each PR you appoint could ask you to pay fees.
I’m using a Professional Representative (PR) – do I need to do anything?
The PR is responsible for keeping you updated. If you’re entitled to compensation, we’ll make any payment to the PR. They’ll be responsible for sending you the money after taking out any fee.
If you decide to take back the permission you’ve given to a PR to act on your behalf, you need to let us know. We’ll write to the firm to inform them of your request. After that, we’ll talk to you directly. Just remember, if you do withdraw your permission, you must also tell the firm you previously authorised. You may have to pay them a fee depending on the terms of your agreement with them. We’re unable to advise you in relation to this and you should ask the firm if you’re unsure.