Good to know: We are a Claims Management Company (CMC). You do not need to use a CMC to make your complaint to your lender, bank or insurer. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.

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While much of the focus on car finance mis-selling has been on Discretionary Commission Arrangements (DCAs), it’s important to understand that issues can also arise from non-discretionary car finance commission claims. Even if your finance agreement didn’t involve a DCA, you might still have grounds for a complaint if other types of commission, such as fixed-rate or flat-fee commissions, were not clearly disclosed to you, or if the arrangement was otherwise unfair. Allegiant Finance Services can help you explore if you have a potential car finance commission claim (non-DCA).

What Are Non-Discretionary Commission Arrangements?

Non-discretionary commission arrangements in car finance are those where the amount of commission paid to the car dealer or broker by the lender is pre-set and not variable based on the interest rate charged to the customer. Common types include:
  • Fixed Rate Commission: The broker receives a set percentage of the loan amount as commission.
  • Flat Fee Commission: The broker receives a fixed monetary amount for each finance agreement they arrange.
Unlike DCAs, the broker does not have the discretion to alter your interest rate to increase their commission under these models. However, this doesn’t mean that issues cannot arise, particularly around transparency and informed consent.

Why Might You Have a Non-Discretionary Commission Claim?

The primary basis for complaints about non-discretionary car finance commission often revolves around a lack of transparency. The Financial Conduct Authority (FCA) and UK consumer law emphasize the importance of customers being given enough clear information to make informed decisions. If you were not made aware that the dealer or broker was receiving a commission for arranging your finance, or if the details of that commission were hidden or unclear, you may have been disadvantaged.
Key reasons for a potential non-discretionary car finance commission claim include:
  • Lack of Disclosure: You were not told that a commission would be paid to the dealer/broker by the lender for arranging the finance.
  • Unclear Information: Even if commission was mentioned, it might have been buried in complex jargon within the terms and conditions, making it difficult to understand its impact.
  • Impact on Impartiality: The existence of a commission, even a fixed one, could still influence the broker’s advice or the range of finance options presented to you. If this wasn’t clear, you might not have received truly impartial guidance.
  • Unfair Relationship: Some legal arguments suggest that if a broker is acting for you, they have a duty to disclose any commission they earn, as it could create a conflict of interest or an unfair relationship.
The Court of Appeal ruling in October 2024 (Johnson and others), while primarily focused on DCAs, also reinforced the principle that it could be unlawful for brokers to receive any commission from a lender without the customer’s fully informed consent. This principle could extend to undisclosed fixed commission car finance or flat fee car finance commission issues.

How Do Non-DCA Claims Differ from DCA Claims?

While both types of claims relate to commissions in car finance, the core issue in DCA claims is the discretion the broker had to set your interest rate to increase their own commission. For non-DCA claims, the focus is more on whether the existence and nature of the (pre-set) commission were adequately disclosed to you, allowing you to make a fully informed decision.
If you are wondering, “Can I claim if my car finance commission wasn’t a DCA?” the answer is potentially yes, if there were issues with transparency or fairness.

Allegiant’s Role in Your Non-Discretionary Commission Claim

At Allegiant Finance Services, we understand the nuances of different types of car finance commission issues. If you believe you were not properly informed about a non-discretionary commission on your car finance agreement, we can help you investigate and pursue a claim.
Our services include:
  • Agreement Review: We will examine your finance documents to understand the commission structure involved.
  • Information Gathering: We will help you gather any relevant information about what you were told (or not told) at the time of sale.
  • Claim Management: We will prepare and submit your complaint to the lender or broker, outlining the reasons for your claim.
  • Guidance and Support: We will keep you updated throughout the process and advise on next steps, including escalation to the Financial Ombudsman Service if appropriate.
It’s important to know that you can also make a complaint directly to the lender or broker yourself, and if you’re not satisfied with their response, you can take your case to the Financial Ombudsman Service for free. If you choose to use our services, we typically operate on a no-win, no-fee basis (terms and conditions apply and will be clearly explained).

Exploring Your Options for Non-Discretionary Commission Claims

If you took out car finance and are unsure about the commissions involved, or if you feel you weren’t given the full picture, it’s worth exploring your options. The regulatory environment is increasingly focused on ensuring fairness and transparency for consumers.
Contact Allegiant Finance Services today for a free, no-obligation discussion about your potential non-discretionary car finance commission claim. We can help you understand if you have grounds for claiming for unfair non-DCA commission.
Link back to the main Car Finance Commission Claims page Link to the DCA Claims sub-page
Disclaimer: This page provides general information about non-discretionary car finance commission claims. It does not constitute financial or legal advice. The outcome of any claim is subject to the specific circumstances of your case and the decisions of lenders, the Financial Ombudsman Service, or the courts. Allegiant Finance Services Limited is authorised and regulated by the Financial Conduct Authority.

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Around 40% of car finance deals had discretionary commission arrangements [2]

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Over 14 million finance agreements were subject to DCAs [2]

Stephen Griffiths, Head of Product

Stephen is our Head of Product, with a steadfast dedication to consumer justice and thought leadership . In his early years, Stephen was a Complaints Handler at Lloyds Banking Group. Stephen then worked at the Financial Ombudsman Service for over 10 years in various roles, including Quality Auditor. Stephen ensures Allegiant provides top tier claims handling for our customers.

Frequently Asked Questions

Are car finance claims real? / Are these car finance claims legit?

Absolutely. In fact, they’re grounded in solid legal precedent. In October 2024, the Court of Appeal ruled that dealers and brokers must disclose motor-finance commissions; failing to do so meant many borrowers paid inflated rates. The Supreme Court then heard appeals (Close Brothers and FirstRand/MotoNovo) in April 2025, with a final judgment due in July 2025.

Car finance claims can be pursued either on your own or via a claims management company (CMC) or regulated law firm. Both routes follow the same FCA and Ombudsman processes, but the level of support differs

DIY (Do It Yourself)

Gather Every Document: Locate your finance agreement, APR schedules, purchase invoices, application forms and any broker/dealer communications.
Submit a Formal Complaint to Your Lender/Broker: Write a clear letter referencing hidden or “discretionary” commission and how it likely inflated your rate. Under normal FCA rules, lenders have eight weeks to issue a “final response,” but these timelines are currently on hold until the Supreme Court judgment in July 2025. Nevertheless, lodging a complaint now preserves your complaint date.
Wait for Final Response / Escalate: Once the Supreme Court rules, lenders must resume handling. If you’re unhappy with their final response (or they miss the eight-week deadline), you escalate to the Financial Ombudsman Service (FOS). The FOS typically resolves straightforward cases in 3–9 months.
Receive Redress: If successful, your lender pays the difference between what you actually paid and what you should have paid, plus interest on those overpayments.

Using a CMC or Law Firm

Initial Eligibility Check: The specialist (CMC or solicitor) first verifies whether your finance deal (PCP or HP signed between April 2007 and January 2021) likely involved an undisclosed commission. This quick screening often takes just a few minutes of basic details.
Paperwork Gathering & Review: Instead of you chasing every invoice or APR sheet, the CMC or law firm requests those documents on your behalf. They know exactly which forms lenders require – saving you time and ensuring nothing is overlooked.
Complaint Drafting & Submission: Experts draft a robust complaint letter that cites FCA regulations and relevant case law. They submit it to the lender (or broker) and track responses in real time. If the lender drags its feet, the CMC/law firm can escalate at the eight-week mark on your behalf.
Ombudsman Escalation (If Needed): Should the lender’s final response be unsatisfactory, the CMC or solicitor compiles all evidence and files the case with the FOS – often framing arguments in tighter legal language to strengthen your position.
Negotiation & Settlement: Once liability is acknowledged – either directly or via the FOS – the specialist negotiates the redress calculation (overpayment interest, lost credit benefit, etc.).

Timelines hinge entirely on the Supreme Court’s July 2025 decision and the FCA’s subsequent instructions:

Supreme Court Judgment (July 2025): The Court is set to publish its ruling by late July 2025. Until then, lenders must pause all commission-related complaints.

FCA Announcement (Within 6 Weeks of Ruling): Once the judgment appears, the FCA has pledged to outline (by approximately late August 2025) what the next steps will be. We expect claims to start paying out later in 2025.

“Best” depends on three non-negotiable criteria—regulation, fees and track record—whether you pick a CMC or a law firm:

Regulatory Oversight (FCA or SRA):

It is essential to ensure your professional representative is authorised to represent you under a relevant regulator.

Claims Management Companies (CMCs) are regulated by the FCA under the Financial Services and Markets Act.

Law Firms handling these claims are regulated by the Solicitors Regulation Authority (SRA).

Fee Structure & Transparency:

No Win, No Fee: Both top CMCs and law firms typically operate on a no win–no fee basis, but the percentage they charge can vary (often 25–35 percent of your redress). Always request their full fee schedule in writing. Look out for hidden extra costs (e.g., VAT, “file handling” fees, or unscheduled disbursements). Here at Allegiant, our prices are clearly stated to include VAT. We have no hidden charges.

Lawyers vs CMC Fees: In some cases, SRA-regulated firms charge slightly higher percentages than CMCs.

Demonstrable Success & Client Feedback

Track Record: The best providers (CMCs or law firms) publish anonymised case studies or statistics demonstrating their experience. Allegiant has claimed over £80 million across all claim types.

Independent Reviews: Check Trustpilot, Which? or MoneySavingExpert forums. Beware of five-star packed reviews—look instead for detailed, balanced feedback. High-volume CMCs sometimes trade on aggressive marketing; top law firms usually have steadier, quality-based reputations. Allegiant has an excellent Trustpilot rating Our reviews are not manipulated. Be aware of providers that ask customers to write a 5* review based on a “great” phone call only(!). Look for results based reviews.

See the Latest Car Finance News from our Insights blog

Two Types of Commission Explained

In this blog, our Head of Product, Stephen Griffiths, explores the main two branches of commissions associated with car finance.

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Mis-sold Car Finance: What You Need to Know

We take a look at the essentials all UK drivers should know about vehicle hidden commission claims.

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The Story of Ms Lewis, Arnold Clark, Barclays Partner Finance, and Hidden Commission

Learn about the humble beginnings of the UK’s largest financial scandal since PPI.

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Our Car Finance Claims Process

  • investigation 1

    Step 1

    We'll locate and review your car finance agreements

  • paperwork icon

    Step 2

    We'll spot and lender failings, and hold them to account

  • negotiation 1 icon

    Step 3

    We'll review the lenders offer, or escalate as necessary

  • cash back icon

    Step 4

    Where eligible, we will ensure you are re-united with your cash

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Claiming for Free Yourself

Good to know: We are a Claims Management Company (CMC). You do not need to use a CMC to make your complaint to your lender, bank or insurer. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.