Commission Arrangements

29 October 2024 Update

On 25 October 2024 the Court of Appeal issued a judgment which goes beyond the scope of the current Financial Conduct Authority (“FCA”) motor commission review. Whether the Judgment applies to commission types outside of the FCA’s motor finance review into discretionary commission arrangements (“DCA”) is not yet clear. While the Judgment is likely to extend the current period of uncertainty for customers, lenders and dealers alike, we are seeking clarity with the FCA and will update this page with any new information. This does not impact your ability to raise a complaint at any time, should you wish to do so, and we will handle your complaint in accordance with our normal complaints handling process.

Discretionary Commission Arrangements

24 September 2024 Update

On 24 September 2024, the FCA announced they are extending the pause on complaint handling rules for discretionary commission arrangements (“DCAs”). They will now announce the findings of their investigation in May 2025 and have extended the pause on complaints handling to 4 December 2025.

Volvo Car Financial Services UK Limited (VCFSUK) commenced retail business on 4 May 2021. VCFSUK has never adopted a Discretionary commission model with their Retailers.

The Financial Conduct Authority (“FCA”) has described a discretionary commission arrangement (“DCA”) as an arrangement between lenders and brokers which allowed the broker to adjust the interest rates offered to customers. Typically, the higher the interest rate, the more commission the broker received. This practice was banned by the FCA in 2021, which was before Volvo Car Financial Services UK Limited commenced regulated business, however the FCA are now undertaking a review of the industry to understand whether there has been a widespread failure to comply with relevant requirements, resulting in financial loss or harm to consumers.

For further information, you can visit the announcement on the FCA’s website here.  

If you would like to raise a complaint, please follow the procedure below: