Motor finance commissions
What’s going on in the industry, and how to find out if you had a discretionary commission arrangement.
Decisions on motor finance commission cases from the Court of Appeal and the Supreme Court - What it means for Ayvens in the UK
The latest Supreme Court ruling concerning car dealers and third-party lenders in relation to motor finance is a significant moment for our industry.
At LeasePlan (trading as Ayvens) we work closely with partners to offer mobility solutions to our customers, including vehicle finance. 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.
We know this ruling will have raised a lot of questions; we’re carefully reviewing the details and making sure we’re understanding what this means for us and our customers. If you’re directly impacted, we’ll be reaching out with further updates in due course.
In response to the ruling, the FCA announced on 3 August 2025 that it will consult on a redress scheme, with the intent to publish the consultation by early October and finalise details for any compensation scheme for 2026. This scheme will cover Discretionary Commission Arrangements (DCAs) and consider whether any non-discretionary commission arrangements should also be included. We will provide further updates when we can, but for now, there is no further action to be taken until the FCA consultation is complete towards the end of 2025.
For more details on the FCA announcement, please visit: FCA compensation scheme for motor finance customers.
LeasePlan (trading as Ayvens) carefully consider all developments and have made changes to how we onboard our customers. As always, our focus is on doing the right thing – ensuring fair outcomes for customers and supporting a transparent, well-regulated motor finance market.
The FCA’s review on motor industry finance commission
In January 2024 the Financial Conduct Authority (FCA) shared that they would review motor finance discretionary commission arrangements (DCAs) and how these have been handled across the motor finance industry today and in the past.
On 24 September 2024, the FCA released an update to the ongoing review and issued further guidelines. The complaints pause was then widened on 20 December 2024, so the FCA have now given firms until after the 4 December 2025 before they have to start responding to any type of motor finance commission complaint (including DCAs).
- At the start of August, the FCA confirmed their intent to consult on a redress scheme which is planned to be published by early October 2025. Confirmation of the outcome, including which motor finance agreements will be in scope for any potential compensation, is expected to be published in late 2025.
- The redress scheme is expected to cover DCAs and consider whether any non-discretionary commission arrangements should also be included. Any compensation scheme is likely to start in 2026.
- The current complaint handling pause is still in place and the deadline for us to respond to customer complaints will be after 4 December 2025, however, the FCA have indicated that this may be extended further. As a result, we will not be in a position to issue final responses to commission complaints at this time.
- If you have already contacted us and received confirmation that you are currently in scope of the FCA review, you do not need to do anything further at this time. We will reach out to you as soon as we have any updates.
- You will have more time to refer complaints to the Financial Ombudsman when a final response is issued. Instead of the usual six months, you have until 29 July 2026, or 15 months from the date of the final response letter, whichever is later. The timelines will be confirmed in the final response letter we send you.
- Alternatively, if you have received confirmation that your query / complaint was outside of the FCA review, you don’t need to contact us again. If your agreement is impacted by the redress scheme, we’ll be in touch once the details have been finalised by the FCA.
Submitting a motor finance commission information request or complaint
For all impacted customers, we’ll be providing further updates in due course. You do not need to take any action yet and we won’t have any further detail to provide if you call us. However, if you do wish to check whether your agreement included a DCA 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 motor finance commissions, 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, then confirm whether a DCA or non-DCA commission applies and if you are in scope for the FCA investigation. We’ll reply as soon as we can, but we are experiencing a high volume of requests, so thank you in advance for your patience.
Once we have had further guidance from the FCA, we’ll then be able to investigate the specifics of your complaint and give you a formal response. The FCA have now given firms until after the 4 December 2025 before they have to start responding to any type of car finance commission complaint (including DCAs). The FCA intend to confirm their next steps within 6 weeks of the Supreme Court's decision, including if they will be proposing a redress scheme. The FCA hopes to provide an update on motor finance non-DCA commission complaints at the same time.