June 19, 2024

FOS receives 20,000 complaints about car finance commission

The Financial Ombudsman Service (FOS) is currently handling around 20,000 ongoing complaints related to car finance commission cases, as stated in a press release.

In January 2024, the FOS released its initial representative final decisions, addressing various arguments from motor finance complaints.

Three car finance commission-related cases were granted permission to proceed to the Court of Appeal in March. The Court of Appeal’s ruling is expected to clarify laws regarding commissions in motor finance payments, with the hearing yet to take place.

In April, Clydesdale Financial Services Limited, trading as Barclays Partner Finance, began judicial review proceedings on one of the FOS’s decisions. The outcomes of both the judicial review and Court of Appeal cases could significantly impact how the FOS handles similar complaints.

Implications for Complaints

In January, the Financial Conduct Authority (FCA) announced a review of historical motor finance discretionary commission arrangements. The FCA has paused final responses for some cases and will provide further information by September 24, 2024.

Due to pending court decisions, the FOS cannot issue final decisions on affected cases currently. However, it will continue to accept and investigate complaints to gather necessary information for future decisions.

The FOS aims to assess whether complaints will be impacted by ongoing legal proceedings and will provide provisional assessments and final decisions on unaffected cases.

Deputy Chief Ombudsman James Dipple-Johnstone emphasized the importance of fair treatment and transparency in car loans, addressing concerns from over 20,000 individuals regarding excessive finance charges.

The FOS’s goal is to ensure fair compensation for valid complaints, provide clear explanations to consumers, and help financial firms learn from similar complaints.

Investec sets aside £30 million amid FCA commission probe.


1. What is the role of the Financial Ombudsman Service?

2. How are ongoing legal proceedings affecting complaint resolutions?

3. What actions are being taken by the Financial Conduct Authority regarding motor finance commission arrangements?


The ongoing legal proceedings surrounding car finance commissions have significant implications for how complaints are handled by the Financial Ombudsman Service. It is essential for transparency and fairness in financial transactions to protect consumers and ensure accountability in the industry.

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