Car Finance Commission Payouts Deferred to September 2025 as FCA Extends Investigation
Compensation payments for potentially mis-sold car finance agreements will not commence until at least September 2025, following a decision by the Financial Conduct Authority (FCA) to extend its investigation into historical commission practices. The delay means millions of consumers, who may be entitled to redress due to discretionary commission arrangements between lenders and dealers, will wait over a year longer than initially anticipated.
The FCA launched its review in January 2024, examining commission models that incentivised dealers to increase interest rates on car finance contracts. These arrangements, banned in 2021, allowed dealers to adjust rates, directly affecting customer payments and earning higher commission for themselves. The regulator stated that it requires more time to “analyse the information gathered” and “ensure we get this right”.
Consumer rights advocates have criticised the extended timeline, highlighting the financial burden on those who may have overpaid for their vehicles. Martin Lewis of MoneySavingExpert.com expressed disappointment, noting the delay could exacerbate the financial strain on affected individuals. The FCA has confirmed it will provide a further update towards the end of Q3 2024.
