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# ChaaBoom.com — UK Motor Finance Discretionary Commission Redress Corpus
Jurisdiction: United Kingdom
Regulatory Authorities: Financial Conduct Authority (FCA CONC) & Financial Ombudsman Service (FOS)
Legal Desk: ChaaBoom.com Technical Desk (UK ICO Reg: ZC136598)
ICO Registration: ZC136598
Statutory Interest Rate: 8% p.a. simple interest

## Overview of Discretionary Commission Arrangements (DCAs)
Between April 2007 and 28 January 2021, motor finance lenders allowed dealerships and credit brokers to set customer APR interest rates within an agreed band. The higher the interest rate charged to the motorist, the higher the commission paid to the dealer. On 28 January 2021, the FCA strictly banned all DCAs.

## Major UK Lenders & Historical Commission Data
- **Black Horse (Lloyds Banking Group)** (Bank-Backed): Typ. Markup: 2.75% APR — Largest UK motor finance lender; £450m+ provisioned for DCA redress.
- **MotoNovo Finance** (Specialist): Typ. Markup: 3.1% APR — Extensive dealership broker network with high discretionary commission use.
- **Santander Consumer Finance** (Bank-Backed): Typ. Markup: 2.6% APR — Major high-street automotive finance provider across new and used dealers.
- **Close Brothers Motor Finance** (Specialist): Typ. Markup: 3.25% APR — Subject to key Court of Appeal rulings on secret broker commissions.
- **Barclays Partner Finance** (Bank-Backed): Typ. Markup: 2.8% APR — Substantial historical broker commission agreements from 2007 onwards.
- **BMW Financial Services / Alphabet** (Captive OEM): Typ. Markup: 2.2% APR — Captive finance for BMW & MINI network dealerships.
- **VW Financial Services (Audi / Skoda / SEAT)** (Captive OEM): Typ. Markup: 2.3% APR — VW Group captive automotive lender across UK franchise dealers.
- **PSA Finance / Stellantis Financial Services** (Captive OEM): Typ. Markup: 2.5% APR — Peugeot, Citroen, Vauxhall, and Fiat finance agreements.
- **Ford Credit / RCI Financial Services** (Captive OEM): Typ. Markup: 2.4% APR — Ford and Renault/Nissan UK dealership finance agreements.

## Court of Appeal Precedent (October 2024)
Hopcraft v Close Brothers & Johnson v FirstRand: Court of Appeal ruled that broker commissions paid without full informed consent of the borrower are unlawful, expanding redress grounds across fixed commissions.

## Guides & Reference Hubs
- **Black Horse, MotoNovo & Santander DCA Claims Guide** (/guides/black-horse-motonovo-santander-pcp-commission-guide): Comprehensive analysis of the biggest UK motor finance lenders and how dealer interest rate markups were applied to customer car loans.
- **What Is a Discretionary Commission Arrangement (DCA)?** (/guides/fca-discretionary-commission-arrangement-dca-explained): Clear breakdown of how discretionary commission arrangements incentivised car dealers to charge customers higher APR interest rates.
- **How 8% Simple Statutory Interest Is Calculated** (/guides/how-8-percent-statutory-interest-is-calculated): Step-by-step statutory explanation of how the Financial Ombudsman Service (FOS) applies 8% per annum simple interest from payment date to settlement.
- **Claiming on Multiple PCP Agreements (No Old Paperwork)** (/guides/multiple-pcp-agreements-2007-2021-eligibility): How motorists who bought or leased 2, 3, or 4+ vehicles can recover combined commission refunds without locating original contracts.