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Motor Finance Commission Complaints

The Financial Conduct Authority (FCA) is looking into how motor finance companies used to pay commission to vehicle dealers. This includes arrangements where dealers could influence the interest rate offered to customers.

On 1 August 2025, the Supreme Court issued a decision concerning commission disclosure. In response, the FCA introduced a redress scheme on 30 March 2026 (the Redress Scheme) to help affected customers. However, the Redress Scheme is now subject to legal challenge, which means there is uncertainty about the timetable for implementation.

What are motor finance commission complaints?

Motor finance commission complaints relate to how dealers and car finance brokers were paid commission when arranging finance for vehicle purchases. There are two main types:

A Discretionary Commission Arrangement (DCA) Complaint: This relates to finance agreements entered before 28 January 2021, where the dealer could adjust the interest rate under the agreement and earn more commission. DCAs have since been banned by the FCA in motor finance.
A Non-Discretionary Commission (Non-DCA) Complaint: This involves agreements where commission was paid, but the dealer could not influence the interest rate.

What’s happening with Redress Scheme Complaints?

The FCA published details of the Redress Scheme on 30 March 2026. However, the Redress Scheme is currently subject to legal challenge, which means there is a delay and we’re not yet able to progress complaints fully. Redress Scheme complaints will remain on hold until the FCA provides further guidance.

You can still submit a complaint. We’ll acknowledge your complaint and keep it under review while we continue our preparations for the Redress Scheme.

What’s happening with non-Redress Scheme Complaints?

To support its review of commission arrangements, the FCA paused the usual rules for handling commission-related complaints.

For commission complaints which don’t fall under the Redress Scheme, the pause came to an end on 31 May 2026. We’re now responding to these complaints and will contact customers in due course.

Please find more information on the FCA website, links below:

https://www.fca.org.uk/consumers/car-finance-complaints

https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme

https://www.fca.org.uk/news/statements/fca-consult-compensation-scheme-motor-finance-customers

https://www.fca.org.uk/news/statements/pause-motor-finance-complaints-handling-lift-31-may-2026

Financial Ombudsman Service (FOS)

When we’re able to provide a final response to your complaint, we’ll explain your right to refer the matter to the FOS.

If you’re unhappy with our final response, or if we don’t provide a final response at that stage, you may be able to refer your complaint to the FOS.

The time limits for referring your complaint to the FOS may be different from the usual 6 month period where complaints are affected by the Redress Scheme or any alternative approach. The relevant time limits will be set out in the final response letter we send you.

Further information about the FOS is available at www.financial-ombudsman.org.uk

How do I make a motor finance commission complaint?

To help us check if you had a motor finance agreement with us and to begin our investigation, please email us at complaints@mannisland.co.uk.

Please include as much of the following information where possible to help us locate your agreement. If you’re missing some details, just provide what you have, and we may follow up if we need anything further.

Details to include:

Your full name
Date of birth
Current address and previous addresses (including postcode)
Agreement number (if known)
Vehicle registration number
Make and model of vehicle
Contact telephone number

If your agreement included a commission arrangement, we’ll register a complaint for you, confirm this in writing, and begin our investigation. You don’t need to do anything further unless we contact you.

If you’re just enquiring and not submitting a formal complaint at this stage, please let us know in your email. We’ll check our records and confirm whether your agreement included a commission arrangement.

Do I need to instruct a claims management company or law firm to make the complaint to you on my behalf?

No, you don’t need to instruct a claims management company or a law firm – you can complain directly to us for free.

Beware of Scams

Since the FCA announced plans to introduce a Redress scheme, scammers have been contacting people pretending to be motor finance companies. They may offer fake compensation and ask for personal details.

How to stay safe:

We’ll only ask for personal information when it’s necessary to verify your identity – whether you contact us or we contact you. We’ll never ask for full bank details, passwords, or request sensitive information unexpectedly, or via unsolicited messages. We’d never contact you by WhatsApp.
If you receive a suspicious call, message, or email claiming to be from us, don’t share any personal details.
Always use our official email address to make a complaint.

If you’re unsure whether a communication is genuine, please contact us directly on 0330 123 0332 or email us at complaints@mannisland.co.uk.

You can find more information about protecting yourself from scams at www.fca.org.uk

What happens next?

We’ll continue to update this website when we receive further guidance from the FCA.

If you’ve already submitted a complaint, you don’t need to do anything right now. We’ll contact you once we’re able to provide an update.

If you’ve not yet complained and believe your finance agreement may have involved a commission arrangement, you can still submit a complaint during the pause. Please follow the steps in the “How do I make a motor finance commission complaint?” section.