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.
On 30 March 2026, 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. We’re currently reviewing the statement.
What this means for you.
The FCA have confirmed that for purchase agreements:
• Firms will have from 1 July 2026 until 30 September 2026 to respond to commission related complaints.
• Or, from 1 July 2026 until 30 November 2026 if your agreement started before April 2014.
We would normally have eight weeks to send you a final response letter from the date of your complaint. However, the introduction of the redress scheme means your complaint will be responded to in line with the rules and dates set out above.
If you have a non-purchase (lease) agreement.
The FCA confirmed last year 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 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: April 2026.