Car finance redress
What Is a Discretionary Commission Arrangement (DCA)?
Independent and free. We're not a claims firm — here's the mechanism in plain English.
Redress estimate
Any figures here are an estimate, not a promise, and nothing on this page is financial or legal advice. You can claim free yourself — you don't need a claims firm.
A discretionary commission arrangement (DCA) let a car dealer or broker raise your finance interest rate to earn themselves more commission. Because the higher your rate, the more they were paid, some borrowers paid more interest than they needed to.
The FCA banned DCAs on 28 January 2021, and they sit at the heart of the car finance scandal. Any figure you see is an estimate, not a promise — nobody is guaranteed a payout, and the amount depends on your own agreement. Check your position with the compensation estimator, then read the scandal explained.
What is a discretionary commission arrangement (DCA)?
A DCA is a deal where the dealer or broker could choose your interest rate within a range, and earned more commission the higher they set it. The FCA banned this practice on 28 January 2021.
The lender let the broker move the rate up or down. Moving it up earned more commission — a clear conflict of interest, because the person arranging your finance was rewarded for charging you more.
Did your agreement have one?
You often can't tell from the paperwork alone, because DCAs were rarely spelled out. The strongest clues are the date, the route and how your rate was set.
The surest way to find out is to ask the lender directly — our letter template does exactly that.
- Your finance started between 2007–2024 (before the ban).
- It was arranged by a dealer or broker, not a loan you set up directly with a bank.
- Nobody clearly explained how your interest rate was decided or what commission was paid.
Why DCAs were unfair
DCAs were unfair because they rewarded the broker for making your finance more expensive, without telling you. Your interests and theirs pulled in opposite directions.
This is the conflict the Supreme Court examined on 1 August 2025, applying the unfair-relationship test (s140A, Consumer Credit Act 1974). The FCA's ban and redress scheme followed.
The conflict in one line
Which years are affected?
Agreements from 2007–2024 are the focus, because DCAs were in use up to the FCA ban on 28 January 2021. Deals arranged after the ban should not carry a DCA.
If your deal sits inside that window, it's worth checking. Any figure you see is an estimate, not a promise — nobody is guaranteed a payout, and the amount depends on your own agreement.
Were you mis-sold?
The next step is to check your own deal against an honest checklist — then estimate, for free. No claims firm required.
Work through am I eligible, then try the compensation estimator. Claiming is free and you can do it yourself: complain to your lender first, then escalate to the Financial Ombudsman Service. You do not need a claims-management company taking a cut.
Frequently asked
What is a discretionary commission arrangement (DCA)?
Did my agreement have a DCA?
Why are DCAs unfair?
What years are affected?
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