Commission products that - incentivise and give discretion for dealers to be able to change any aspect of the finance deal which affects the total cost of credit paid by the customer - can no longer operate. These changes were in response to the FCA’s findings from 2017/18 which showed that 'discretionary' commission products had led to, on average, customers paying £1,100 more for their motor finance agreement equating to costs of £300m across the UK.
Updated disclosure rules have also been implemented requiring dealers and brokers to disclose the existence and nature of commission, prominently and in good time before the customer decides to proceed with the agreement. These areas are covered within our recent updates to the SAF Expert training material outlined here. The FLA has produced guidance on commission and disclosure here.