Unfair motor finance commissions

On 30 March 2026, the Financial Conduct Authority (FCA) confirmed an industry wide redress scheme covering certain Hire Purchase (HP) and Personal Contract Purchase (PCP) agreements taken out between 6 April 2007 and 1 November 2024, where commission arrangements were not properly disclosed to customers. 

Redress will only be paid where a customer was treated unfairly, which may include discretionary commission arrangements (DCA), high commission structures or tied dealer lender relationships.

No. First Response Finance has never operated discretionary commission arrangements.

No. First Response Finance has never had exclusive ties or contractual arrangements with motor dealers that could create a conflict of interest or influence the customer's interest rate or deal structure.

Following a detailed internal review, we've identified a very small number of historical agreements that may qualify under the FCA's criteria. 

This position reflects the fact that the FCA's final scheme applies only to specific types of undisclosed commission structures, and not to all motor finance agreements.

No. Under the FCA's final rules, firms are not required to contact all past customers, only: 

• customers who've already complained, and 
• customers whose agreements the firm identifies as potentially qualifying for redress.

If you're due redress, First Response Finance will contact you directly and within the timelines set by the FCA, not our own timelines.

The FCA has announced that parts of the motor finance redress scheme have been suspended pending the outcome of legal proceedings. The timing of customer communications and any compensation payments may therefore be subject to change. If you're entitled to redress under any final FCA compensation scheme, First Response Finance will contact you directly.

Customers will not be eligible where: 

• There was no discretionary or high commission arrangement 
• Commission levels were below the FCA's minimum thresholds 
• Commission was properly disclosed 
• The finance did not involve a dealer or broker (e.g. arranged directly with the lender) 
• The commission was lower than £120 (pre 2014) or £150 (post 2014), which the FCA considers fair

The FCA's national scheme covers 12.1 million agreements across the UK market. 

However, the vast majority of these agreements were held with lenders that used DCAs, high commission structures, or exclusive ties - none of which apply to First Response Finance.

For this reason, only a very small number of our historic agreements fall within the FCA's scope.

No. The FCA has made clear that customers don't need to use CMCs, which may charge significant fees, and that contacting the lender directly is free and equally effective. 

If you're due redress, we'll ensure you receive it promptly and within FCA timelines.