DCA Claims: Do You Have a Discretionary Commission Arrangement Claim?
What is a Discretionary Commission Arrangement (DCA)?
Why Are DCA Claims Being Made?
- Lack of Transparency: Customers were often not told that the interest rate could be adjusted by the dealer, nor were they informed about the commission structure that incentivised higher rates.
- Conflict of Interest: The dealer or broker was incentivised to act in their own financial interest, rather than securing the best possible finance deal for the customer.
- Potential Overcharging: As a result, many consumers may have been charged higher interest rates and, consequently, paid more over the life of their finance agreement than they should have.
How Do I Know If I Had a DCA in My Car Finance Agreement?
Making a Claim for DCA Car Finance
If your car finance agreement included a discretionary commission arrangement (DCA) and you were not properly informed, you may be eligible for compensation under the FCA’s confirmed motor finance redress scheme. A DCA allowed the broker (usually the car dealer) to adjust the interest rate on your loan in order to increase their own commission – meaning you may have paid more than you needed to.
The FCA published final rules for the redress scheme on 30 March 2026 (PS26/3). The scheme is now live, with implementation periods ending 30 June 2026 for agreements from April 2014 onwards and 31 August 2026 for earlier agreements. If you have already complained, your lender must tell you within 3 months of the relevant implementation date whether you are owed money and how much. If you have not yet complained, your lender will contact you if you are likely to be owed compensation – but complaining now puts you on the faster track.
The FCA estimates average compensation of around £830 per eligible agreement, with £7.5 billion in total redress expected to be paid out. Cases with very high commission may receive the full commission back plus interest. The vast majority of claims are expected to be settled by the end of 2027.
How Allegiant Can Assist with Your DCA Claim
- Investigation: We will help determine if a DCA was part of your car finance agreement.
- Evidence Gathering: We will assist in collecting all necessary documentation.
- Claim Submission: We will formally submit your DCA claim to the relevant lender or broker.
- Negotiation and Escalation: We will manage communications and negotiations, and if necessary, help you escalate your complaint to the Financial Ombudsman Service.
Start Your DCA Claim Investigation Today
If you had car finance before January 28, 2021, and are concerned you might have been affected by a Discretionary Commission Arrangement, you can get your claim started now. Despite consulting on a potential redress scheme, the FCA encourages consumers to complain now if they feel something is wrong.
The Financial Conduct Authority (FCA), to consult on a Compensation Scheme for car finance customers.
“On Friday the Supreme Court ruled that in many cases commission payments could be legal, but a lender did act unfairly – and therefore unlawfully – due in part to the size of the commission it paid to the motor dealer and how it was disclosed.
Start Your Commission Claim
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 August 2025, the Supreme Court found a particular commission arrangement to be unlawful under a section (s.140A) of the Consumer Credit Act, creating an “unfair relationship between the customer and the lender. There can be various factors which contribute to a commission arrangement being unfair under the Consumer Credit Act, for instance: the size of the commission, the nature of the commission, the characteristics of the customer, the extent and manner of the disclosure, and compliance with the regulatory rules. Customers with claims that share similar facts to the case the Supreme Court upheld, ought to be due compensation too.
How do car finance claims work?
Car finance commission claims are now handled under the FCA’s confirmed motor finance redress scheme (PS26/3, published 30 March 2026). You can access the scheme directly for free, or you can use a claims management company (CMC) or regulated law firm to manage the process on your behalf.
The scheme covers regulated motor finance agreements – PCP, hire purchase, and conditional sale – taken out between 6 April 2007 and 1 November 2024 where commission was not properly disclosed. There are two tracks depending on whether you have already complained:
If you have already complained to your lender, you are automatically included. Your lender must tell you within 3 months of the implementation period ending whether you are owed compensation and how much. You do not need to do anything further.
If you have not yet complained, your lender will contact you if you are likely to be owed money. However, complaining now moves you onto the faster track. You can complain directly to your lender – a template complaint letter is available on the FCA’s website – or you can instruct a CMC like Allegiant to handle it for you.
Once your lender issues a decision, you can accept the offer or challenge it. If you are not satisfied with the outcome, you can escalate to the Financial Ombudsman Service (FOS) for free.
How long do car finance claims take?
The FCA’s confirmed redress scheme sets clear deadlines for lenders:
For agreements from April 2014 onwards, the implementation period ends 30 June 2026. Lenders must then inform complainants within 3 months (by 30 September 2026) whether they are owed money. If you accept, payment follows within a month – meaning compensation could reach you by November 2026.
For agreements from April 2007 to March 2014, the implementation period ends 31 August 2026. Complainants should receive a decision by 30 November 2026, with payment by January 2027.
For consumers who have not yet complained and are contacted by their lender, the timeline is longer. Lenders have 6 months after the implementation period to invite eligible customers to opt in, and consumers then have a further 6 months to respond. This means the full process for non-complainants could extend into late 2027.
The FCA’s stated objective is for millions of claims to be settled in 2026, with the vast majority resolved by the end of 2027. Anyone not contacted by their lender can still complain directly by 31 August 2027.
What is the best car finance claims company?
“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 great 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.
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Go nowOur Car Finance Claims Process
Step 1
We'll locate and review your car finance agreements
Step 2
We'll spot any lender failings, and hold them to account
Step 3
We'll review the lenders offer, or escalate as necessary
Step 4
Where eligible, we will ensure you are re-united with your cash
