Commission
Disclosure
Background:
On the 25th October 2024 the Court of Appeal made a decision relating to the payment of commission, by lenders, to motor finance brokers. This decision implies that, in a specific set of circumstances, lenders should make customers aware of the commission paid to the motor finance broker.
The businesses involved in this case are seeking permission to appeal the Court of Appeal decision at the UK Supreme Court. If permission to appeal is granted, it is likely that the Supreme Court decision will take a considerable amount of time to decide on this case.
The Financial Conduct Authority (FCA) are currently consulting with the finance industry to decide whether to extend the time finance lenders must respond to such complaints about any historic commission payments linked to motor finance.
What you should know:
- Following previous issues with broker commission disclosures on regulated products, the FCA anticipates that any pause, if needed, should be implemented by mid-December 2024.
- If this extension is put in place, it will give lenders more time to efficiently and fairly handlecomplaints or questions from customers.
Our position:
We are awaiting the Supreme Court to determine whether they will review the Court of Appeal decision and for the subsequent appeal to take place.
We are also anticipating the FCA confirming a pause to complaints relating to commission disclosure. We will follow regulatory guidance on this matter in dealing with your query.
We may not be able to provide you with a final position to any complaints, claims or queries you may have until the above matters have been resolved.