The UK Financial Conduct Authority (FCA) banned Discretionary Commission Arrangements (DCAs) in motor finance on January 28, 2021, stopping finance brokers from setting higher interest rates for larger commissions, which overcharged customers. The FCA noted these incentives misaligned with consumer interests and undermined market trust. In October 2024, the Court of Appeals ruled it unlawful for brokers to receive undisclosed commissions without customer consent, prompting companies to update compliance processes. The FCA will outline next steps in May 2025, including consulting on a redress scheme and extending complaint handling until December 4, 2025[1] , due to anticipated high complaint volumes.

Download the infographic

Source: https://www.moneysavingexpert.com/news/2025/03/martin-lewis-car-finance-mis-selling-redress/