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Discretionary commission arrangement complaints

The Financial Conduct Authority (“FCA”) has described a discretionary commission arrangement (“DCA”) as an arrangement between lenders and brokers which allowed the broker to adjust the interest rates offered to customers. Typically, the higher the interest rate, the more commission the broker received.

This practice was banned by the FCA in 2021, however, they are now undertaking a review to assess the extent of the problem and to understand whether customers are owed compensation.

You may have an eligible DCA complaint if:

  1. You used car finance to buy a car before 28 January 2021, this includes conditional sale agreements and fixed-sum loan agreements.

  2. A discretionary commission arrangement was operated in relation to your agreement.

    If you have an eligible DCA complaint, you will not receive a final response within the usual 8-week deadline. The FCA has extended the deadline until 25 September 2024.

If you’re unhappy with our final response

You’re able to take your complaint to the Financial Ombudsman Service (“FOS”). Usually, you have six months from the date of our final response letter to refer your complaint, however, as a result of the pause to complaint handling, this has been extended by up to 15 months.

To make a complaint

For further information, you can visit the announcement on the FCA’s website here. To make a complaint to us in relation to a DCA, please complete the below form:

Make a complaint

Frequently asked questions

What is a Discretionary Commission Arrangement?

The FCA have defined a discretionary commission arrangement (“DCA”) as a commission arrangement in which lenders allowed brokers (the person that arranges the loan, for example, your car retailer) to adjust the interest rates they offered customers for car finance. Typically, the higher the interest rate, the more commission the broker received.

How do I know if a DCA was applicable to my agreement?

If you submit a complaint to us, we’ll investigate your complaint in line with our complaints handling process. As part of this, we will assess whether a DCA was in use when you took out your agreement. If a DCA was in use, we won’t issue you with a final response yet as a result of the pause requested by the FCA on complaints handling.

If a DCA was not in use, we’ll handle your complaint in line with our normal process.

Will I receive compensation?

The FCA is undertaking a review of the industry to understand whether there has been a widespread failure to comply with relevant requirements, resulting in financial loss or harm to consumers. Until they have completed their work and finalised their review, they are not able to say whether this is the case or not.

When will I receive a response to my DCA complaint?

You will receive a final response from 25 September 2024 in line with the FCA pause whilst they complete their review.

What if I’m not happy with the outcome of my complaint?

You can refer your complaint to the Financial Ombudsman Service (“FOS”) within 15 months of having received your final response (if you have an eligible DCA complaint).

I have a personal contract hire agreement, does this apply to me?

No, personal contract hire agreements don’t fall within scope of the FCA review and are not impacted.

I am having difficulties completing the form, how else can I get in contact?

Please contact our dedicated team on 0800 085 1826.

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Account Management Fees
Copy statement of account £12.00
Change of payment due date* £25.00
Change of vehicle registration plate £30.00
Collection of vehicle upon voluntary termination of agreement £70.00
Transfer of agreement fee** £150.00
Arrears Management Fees
Monthly arrears fee*** £35.00
Internal collection agent visit £50.00
External collection agent visit £250.00

* One change of payment due date is allowable free of charge any time during the agreement.
** Only applicable for agreements not regulated by the Consumer Credit Act, i.e. transfers from one limited company to another limited company.
*** When your payment is made late and for every subsequent month that your agreement remains in arrears, limited to 3 in any single defaulting period. The charges detailed within this document are correct as at 30th July 2014. Hyundai Finance reserves the right to amend these fees at any time.