How much could I be owed from a discretionary commission?

If you bought a car, van or motorbike on finance between 6 April 2007 and 1 November 2024, you may be due compensation because of discretionary commission arrangements (DCAs) that made your loan more expensive than it should have been. The UK regulator has proposed an industry-wide redress scheme, with average payouts around £700 per agreement—but your refund could be higher or lower depending on your contract.

Featured snippet-style summary:
Typical refund: around £700 per finance agreement, plus statutory interest where applicable. Your own figure depends on how much extra interest you paid because a broker/dealer increased the rate to boost their commission. Agreements from 2007–2024 are in scope of the FCA’s proposed scheme.

What is “discretionary commission” and why it matters

A discretionary commission arrangement let the dealer or broker change your interest rate and pocket more commission when the rate went up. This created a conflict of interest and, in many cases, unfairly inflated what customers paid. The FCA banned DCAs in 2021 and is now proposing a mass compensation scheme covering older agreements.

• The FCA estimates ~14 million agreements could be eligible, with industry-wide payouts c. £8.2bn and ~£700 average per agreement.
• Independent guidance also references the ~£700 average per agreement.

Government & news context: A Supreme Court ruling in 2025 and subsequent FCA consultation accelerated the proposed redress pathway; the Insolvency Service has issued related guidance for bankruptcy cases.

So… how much could you be owed?

Your compensation broadly reflects how much extra you paid because your rate was raised under a DCA—plus interest in many cases. Although the FCA’s consultation points to an average ~£700, outcomes vary widely.

Key factors that move your figure up or down

• Amount borrowed and term (bigger loans or longer terms → more overpayment potential).
• How much the rate was inflated by the broker/dealer.
• How long you kept the agreement (early settlement can change the maths).
• Interest added to redress (the Financial Ombudsman Service typically adds simple interest; new rates may apply from 2026 for FOS awards).

Quick self-check: were you likely affected?

• You used PCP or HP (not pure leasing) between 2007–2024.
• Your APR felt high compared to headline rates you saw.
• Commission wasn’t explained, or the salesperson could “move the rate”.

Fast estimate ranges

These ranges are illustrative, based on FCA averages and typical agreement sizes we see. Your outcome depends on the specifics of your contract and evidence.

Agreement size	Possible overpayment (principal)	Illustrative redress (before statutory interest)
£5,000–£9,999	£200–£600	£200–£700
£10,000–£14,999	£400–£900	£500–£1,100
£15,000–£24,999	£650–£1,400	£700–£1,800
£25,000+	£1,000–£2,500+	£1,100–£3,200+

Why the spread? If a dealer nudged your APR up by, say, 1–3 percentage points, the extra interest over 3–5 years can sit anywhere from a few hundred to a few thousand pounds, depending on balance and term. The FCA’s ~£700 average sits roughly in the middle for many mainstream PCP deals.

Worked example (for orientation)

• PCP balance: £12,000 over 48 months.
• Fair APR (no DCA): 7.9% → total interest ~£2,000 (illustrative).
• Actual APR charged: 9.9% because broker had discretion → total interest ~£2,800.
• Overpayment: ~£800 (principal element).
• Plus interest on redress: FOS historically adds simple interest (rate rules updated Jan 2026 for FOS cases).
• Indicative payout: £800 + interest, often bringing consumers closer to the £700–£1,000 band.

(Figures are simplified to show the principle; your contract’s schedule produces the precise amounts.)

Timing and what happens next

• The FCA’s consultation on an industry-wide redress scheme closed in December 2025; final rules are expected in early 2026. Complaint handling for most commission cases is paused until 31 May 2026 so the scheme can be finalised.
• You won’t need to use a claims management company; official guidance suggests eligible consumers will be contacted or can claim directly once the scheme launches.

Good to know: GOV.UK has issued updates on how redress interacts with bankruptcy/insolvency—useful if you’re an undischarged bankrupt or a creditor.

How National Claims helps you maximise your payout

We make the process simple, evidence-led, and stress-free:

1. Free eligibility check – we review your finance paperwork (or help retrieve it).
2. Estimate & evidence build – we calculate likely overpayment using your agreement details and transaction history.
3. Submission & tracking – when the FCA scheme opens, we prepare and submit your claim promptly and keep you updated.
4. Challenge low offers – if your redress looks light, we push back with the numbers.

Ready to start? Speak to National Claims today for your no-obligation assessment.

Frequently Asked Questions: Discretionary Commission Compensation

1. Will everyone get about £700?
No. £700 is an average. Your payout depends on your loan size, term, and how much the APR was increased. Some will receive less, others more—particularly on larger balances or big APR uplifts.

2. Does this apply to leasing?
Pure contract hire/lease agreements are generally outside the scope that’s being prioritised for commission redress; the FCA’s latest complaint-handling rules separated these out. PCP and HP are the focus for most DCA claims.

3. What if my dealer didn’t disclose commission?
Non-disclosure can point to an unfair relationship depending on the facts. The redress scheme is designed to address DCA-linked unfairness and related commission issues between 2007 and 2024.

4. Will I get interest on top?
Where handled by the Financial Ombudsman Service, awards historically include simple interest on the overpayment; the FOS confirmed a new interest rate applies for cases from 1 January 2026. Scheme-specific rules will confirm the exact approach.

5. Do I need to complain now or wait?
The FCA expects to publish final rules in early 2026. Many consumers have already complained; those who haven’t will still be able to claim via the scheme. National Claims can log your details now and be ready to act when the scheme goes live.

What to do now (3 steps)

1. Gather documents: finance agreement, settlement letters, bank statements for payments.
2. Check eligibility: if your agreement sits between 2007 and 2024, and you suspect rate-setting discretion or non-disclosure, you’re likely in scope.
3. Get a tailored estimate: National Claims will run the numbers against your contract to give you a bespoke figure rather than a generic average.

Your next step

Don’t wait while your claim window closes. Speak with National Claims today. We’ll connect you with experienced solicitors who understand your case and fight for the maximum compensation you deserve.