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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.



Next steps for the Financial Conduct Authority (FCA).
As part of the review and further to the Supreme Court hearing, on 7 October 2025 the FCA launched a consultation period - a stage where it asked for feedback from consumers, firms, and other stakeholders before making any final decisions about a compensation scheme. This concluded on 12 December 2025. Once the outcome of the consultation is received from the FCA we’ll be able to provide an update in relation to the compensation scheme. 

On 3 December 2025, the FCA confirmed that non purchase (lease) agreements will not form part of the redress scheme, therefore firms such as Mercedes-Benz Financial Services will begin responding to these types of complaints from the 5 December 2025 in line with normal complaint handling rules. 

However, if you have a purchase agreement the hold date has been extended and is now due to expire on 31 May 2026. Once the FCA provides further updates, we’ll contact customers directly and share all relevant information on our website.



What this means for you.

• Purchase Agreements: Your complaint is paused until after 31 May 2026. No action is needed, we’ll contact you following the FCA’s consultation.

• Leasing Agreements: These aren’t included in the pause. We’ll begin responding from 5 December under normal complaint handling rules.

• Guidance: The FCA provides further details on car finance changes here.


• If you would like to submit a new complaint you can do so by email to MBFS-Commissions@mercedes-benz.com. When your complaint has been submitted, our specialist team will provide further information on when you can expect to receive a response from us and if it’s affected by the pause.



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
 


Last updated: December 2025.

On the 25 October 2024, the Court of Appeal ruled against lenders in three separate cases, stating that their customers should have given informed consent for the commission paid to the Retailer/Dealer, and the effect that this payment had on the cost of the finance. This includes being told about the amount and type of commission as well as how the payment by the lender affects the Retailer/Dealer’s impartiality.

 

This decision impacts all agreements where commission payments were paid by the lender to the Retailer/Dealer and the customer did not give informed consent. Informed consent means that customers agree to the arrangement, and that they understand that the broker is acting in their own interests to secure a commission and may not be acting in the customer’s best interests when arranging the finance. All types of commission and/or type of agreement are included and we’re currently reviewing the impact of the ruling on commissions-related complaints for existing finance deals.

 

From Friday 8th November 2024, we’re asking all customers taking out a new finance agreement with us to sign an additional document. This provides full details of the commission we’ll pay the Agent or Dealer for introducing the customer to our products and services. The document will make clear that as a result of paying the commission, the Agent or Dealer will have a financial interest in the arrangement and may not have introduced customers on an impartial basis. This change in the way we do things makes sure our customers are fully informed, understand the nature of commission paid and agree to this arrangement before entering into the finance agreement.

 

Following the Court of Appeal ruling, the FCA have introduced a pause on commission related complaints starting 19th December 2024 and ending on (including) 4th December 2025. Part of the reason for this is that the Court of Appeal decision is currently subject to an appeal to the Supreme Court in 2025.

 

The FCA has published guidance about what these changes mean for customers. The guidance is available Car finance complaints | FCA.

 

Further information about the FCA’s Policy Statement can be found : Firms given until December2025 to respond to motor finance commission complaints | FCA.

 

If you would like to submit a complaint you can do so by email to MBFS-Commissions@mercedes-benz.com. When your complaint has been submitted, our specialist team will provide further information on when you can expect to receive a response from us and if it is affected by the pause.

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