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Motor Finance Complaint Letter

Claim back hidden commission

#Who Can Claim?

You may have a claim if:

  • You took out PCP, HP, or a car loan between 2007-2021
  • The finance was arranged through a car dealership
  • You weren't told about commission the dealer received
  • You paid more interest than you should have

#Before You Complain

✅ Find your finance agreement (check old emails, paperwork, or credit file)

✅ Note the lender's name, not the dealer

✅ Find the lender's complaints email/address (Google: "[lender name] complaints")

#Template Letter

[Your Name]
[Your Address]
[City, Postcode]
[Your Email] | [Your Phone Number]
[Date]

Complaints Department
[Finance Company Name]
[Company Address]
[City, Postcode]

Subject: Formal Complaint – Undisclosed Commission
Agreement Number: [Your agreement/account number]

Dear Sir/Madam,

I am writing to make a formal complaint about my motor finance agreement, referenced above.

#Agreement Details

  • Vehicle: [Make, model, registration]
  • Dealership: [Name of dealer who sold the car]
  • Agreement date: [Date you signed]
  • Finance type: [PCP / HP / Personal Loan]
  • Amount financed: £[Amount]
  • Total repayable: £[Amount]
  • APR: [X]%

#My Complaint

At the time I entered into this finance agreement, I was not informed that the dealership would receive a commission payment from you for arranging my finance.

I believe this commission arrangement was a Discretionary Commission Arrangement (DCA), which allowed the dealer to increase my interest rate above the base rate you offered, with the dealer keeping some or all of the difference.

I was not told:

  1. That the dealer would receive any commission
  2. How much commission would be paid
  3. That the dealer could influence my interest rate
  4. That I might get a better rate elsewhere or by negotiating

This created a conflict of interest. The dealer had a financial incentive to charge me more, not to find me the best deal.

#The Impact

Had I been aware of these arrangements, I would have:

  • Negotiated a lower interest rate
  • Shopped around for alternative finance
  • Potentially not used dealer finance at all

As a result, I paid more interest than I should have.

#What I Am Seeking

  1. Disclosure of the commission paid to the dealer
  2. Disclosure of whether a DCA was in place
  3. Refund of the commission paid
  4. Refund of additional interest I paid due to an inflated APR
  5. 8% simple interest on the above amounts
  6. Compensation for the distress and inconvenience caused

#Relevant Rules

I believe the following rules were breached:

  • FCA Principle 6: Treating customers fairly
  • FCA Principle 7: Clear, fair and not misleading communications
  • CONC rules on disclosure of commission arrangements
  • Common law duty to disclose material information

#Next Steps

Please provide your final response within 8 weeks.

If you reject my complaint or do not respond within 8 weeks, I will escalate this matter to the Financial Ombudsman Service.

Please acknowledge receipt of this complaint within 5 working days.

Yours faithfully,

[Your Signature]
[Your Printed Name]

Enclosed:

  • Copy of finance agreement (if available)

#Finding Your Lender's Contact Details

#What Happens Next

Timeline What to Expect
Week 1 Acknowledgement from lender
Weeks 1-8 Investigation and response
Week 8 Final response deadline
Week 8+ If rejected, escalate to FOS

#Average Payouts

Typical motor finance commission refunds range from £500 to £5,000+ depending on:

  • The size of the loan
  • The interest rate difference
  • How long you had the agreement