Motor Finance Commission Disclosure

Published / Last Updated on 31/10/2019

The Financial Conduct Authority (FCA) has published a consultation to ban commission models that give motor finance brokers/dealers an incentive to raise customers’ interest rates.   There may also be changes to rules to ensure that many types of credit broker give consumers more relevant information about commissions being paid.

The FCA claims its research into this sector has found that discretionary commission models have led to higher finance costs for consumers. Firms are also often failing to give customers timely, relevant information.

FCA plans to tidy up the practices of motor finance providers, motor finance credit brokers, including motor dealers and many types of brokers of regulated credit and consumer hire agreements by:

  • ban commission models that can give brokers and motor dealers an incentive to increase a customer’s interest rate
  • amend parts of our rules and guidance relating to the disclosure of commission arrangements with lenders


It is about time that all areas of finance are bought into line with what financial advisers have to deal with.  Why is it that financial commissions and fees disclosure have been required for pensions, investments and life insurance for 30 years now yet car salespeople can arrange car loans with little or no qualifications, play around the sales commissions and car finance commissions to come up with a deal to suit you or indeed start from a position of maximum sales commission on the car sale itself, the finance cost and interest rate commission.

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