Motor Finance Discretionary Commission Complaints

On January 11th, 2024, the Financial Conduct Authority (FCA) announced that it was undertaking a review of historical discretionary commission arrangements in the motor finance sector, this was in response to a high number of complaints motor finance providers were receiving from customers.

The FCA describes a discretionary commission arrangement (DCA) as an arrangement where a finance provider allowed a third-party broker or dealer, who arranged the finance, to adjust the interest rate they offered to customers to generate a commission. Typically, the higher the interest rate, the more commission generated.

Further information for customer’s affected by the FCA’s review can be found on the FCA website: https://www.fca.org.uk/consumers/car-finance

Whilst the FCA conducts its review, it has introduced a temporary pause to the 8-week deadline to resolve DCA complaints. This pause is to allow finance providers additional time to ensure that complaints are dealt with fairly, in a consistent, efficient and orderly way. This pause will apply to your DCA complaint if:

  • Your finance agreement was a regulated hire purchase agreement (not a regulated hire agreement), and the asset was a motor vehicle.
  • Your finance agreement is dated between April 6th 2007 & January 28th 2021.
  • A third-party (broker or dealer) was paid a discretionary commission in connection with your finance agreement.

You can refer your DCA complaint to us in the usual way https://www.dllgroup.com/gb/en-gb/about-us/Complaints-Handling, however with effect from 11th January 2024, there will be the following changes to our complaint handling procedures for DCA complaints:

  • We will provide a final response to your complaint by September 25th 2024 at the earliest.
  • If you made an eligible DCA complaint before the 11th January 2024, the 8-week deadline for a final response from us has been paused and will resume on 25th September 2024, at the earliest.
  • During the Pause, we will continue to progress your complaint by investigating and collecting information that will assist us with a providing final resolution.
  • If you are unhappy with our final response, you will have additional time to send your complaint to the Financial Ombudsman Service (FOS). You usually have 6 months from the date of the final response letter, however for eligible DCA complaints you will have up to 15 months from the date of the final response letter.

The complaints handling procedure set out above applies to eligible DCA complaints only. Any other type of complaint will be handled in accordance with our standard complaint handling process, which can be found here. https://www.dllgroup.com/gb/en-gb/about-us/Complaints-Handling 

Making a DCA complaint:

You can submit a complaint to us via:

  • Online: Please use the form below
  • Call: Our Customer Services Team are available from 08:00 to 17:00 Monday to Friday on 01923 810016.
  • Email: complaints.uk@dllgroup.com; we are available from 08:00 to 16:00 Monday to Friday
  • Post: De Lage Landen Leasing Ltd, PO Box 430, Watford, WD18 8EZ

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