What’s happened, the UK Supreme Court Decision.
On the 1 August 2025, the UK Supreme Court ruled that it is legal for car and van dealers to earn commission when arranging finance, and that they don’t have to act in the customers best interests when doing so.
However, some agreements can still be considered as unfair under the Consumer Credit Act, such as if a high commission payment is hidden from the customer. In one of the cases the Supreme Court ruled on, the customer claim was successful due to very high undisclosed commission and how the finance arrangement was presented.
How we’re supporting customers.
From 8 November 2024, we started asking all our customers to sign a commission disclosure document when applying for finance. This provides full details of the commission we’ll pay the Agent or Dealer for introducing the customer to our products and services.
This new document is designed to support you, so you can clearly see if a commission is being paid, understand how it might affect your agreement, and make an informed decision before agreeing to the finance agreement.
FCA policy statement.
The Financial Conduct Authority (“FCA”) released its final policy statement on commission related arrangements, setting out how the redress scheme is to be applied by firms. On 8 May 2026, following legal challenges to the scheme, the FCA issued further guidance for firms and customers.
We can confirm that we are one of the firms that has made a legal challenge to the Scheme. This is not because we want to avoid paying fair redress (compensation). We believe there are issues that need to be reviewed by way of a legal process to make sure the Scheme is clear, evidence-based and applied correctly. This should help avoid problems or changes later on.
The legal challenge is still being considered, so we're unable to provide any further information or updates at the moment. However, we will continue to work closely with the FCA throughout this process.
On 2 July 2026, the FCA published confirmation that parts of the redress scheme have been suspended pending the outcome of the challenges.
What this means for you.
There’s no need to get in touch with us at this stage.
The partial suspension of the redress scheme means that if your complaint falls within the remaining part of the redress scheme we will be contacting you directly. If it does not, you will be contacted following the outcome of the legal challenges.
You can find more information about the legal challenges here: Legal challenges to motor finance compensation scheme - update for firms and consumers and about the partial suspension of the redress scheme here: Motor finance scheme partially suspended | FCA.
If you have a non-purchase (lease) agreement.
The FCA confirmed on 3 December 2025 that lease agreements will not form part of the redress scheme. As a result, we’ll respond in line with normal complaint handling rules and you’ll receive a final response within eight weeks of the date of your complaint.
If you would like to submit a new complaint you can do so by email to MBFS-Commissions@mercedes-benz.com. Our specialist team will review your complaint and confirm when you can expect to receive a response from us.
Additional information.
For more information on commissions, please visit our Commissions FAQs. We'll keep these FAQs and this page updated with the latest information as soon as we hear more from the FCA.
The FCA have recently issued warnings about scammers contacting people in relation to a potential car finance compensation scheme. To help protect yourself from scams, you’ll find tips on our website about how to stay safe online and protect your personal information.
The FCA has published guidance to help customers understand what these changes mean: Car finance claims | FCA
More information about the FCA’s Consultation Paper can be found here: PS26/3: Motor finance consumer redress scheme | FCA
Last updated: 3 July 2026.