If you bought a car on finance through Santander Consumer Finance between 2007 and 2021, it is worth checking whether the commission arrangement behind your agreement was properly disclosed.
Santander Consumer Finance is the motor lending arm of Santander UK and, separately from Santander's everyday banking business, financed a large number of dealership PCP and Hire Purchase agreements during this period. As with other major lenders, some of these agreements included discretionary commission arrangements that were not always explained clearly to customers.
This guide covers why Santander agreements are affected, how to check your own eligibility, and what to expect once a claim is submitted.
Why Santander Agreements May Have Involved Mis-Selling
Under a discretionary commission arrangement, the dealer arranging your Santander finance could adjust the interest rate within an agreed range, and their commission increased as the rate rose. Santander Consumer Finance has confirmed on its own complaints pages that this type of arrangement operated across some of its agreements before the practice was banned by the FCA in 2021.
A Court of Appeal ruling in October 2024 also widened the scope of the issue beyond discretionary arrangements, finding that a broader range of undisclosed commission payments could amount to mis-selling. This means agreements that did not technically use a DCA may still be worth checking.
How Santander Handles DCA Complaints
When you raise a complaint, Santander Consumer Finance will confirm whether a discretionary commission arrangement applied to your specific agreement. This is a useful first step, since it removes the guesswork around whether your case is likely to be affected before the complaint progresses further.
CITED EVIDENCE
Santander Consumer Finance states that when a customer raises a complaint, it will confirm whether a discretionary commission arrangement was operated on that agreement, and notes that the practice was banned across the industry by the FCA in 2021.
Santander Consumer Finance, Commission Arrangement Complaints, 2026. Read Santander's complaints page
How to Check If Your Santander Agreement Qualifies
Your agreement is more likely to qualify if it was taken out between 2007 and 2021, was arranged through a dealer or broker rather than agreed directly with Santander, and if you were not clearly told how the dealer's commission was calculated or that it could vary with your interest rate.
You do not need your original paperwork to hand to start checking. PCP Missold's free eligibility check reviews your circumstances and, where possible, helps identify the finance agreement on your behalf before any claim goes further.
What Happens After You Submit a Claim
Once your eligibility is confirmed, a formal complaint is submitted to Santander Consumer Finance setting out why the commission arrangement on your agreement may have been unfair. Santander is required to investigate and respond within FCA-set timeframes.
If Santander does not resolve the complaint satisfactorily, it can be escalated to the Financial Ombudsman Service for an independent decision.
As with claims against other lenders, response times have been affected by FCA-directed pauses to complaint handling, and parts of the wider PS26/3 redress scheme remain suspended while Upper Tribunal proceedings continue. This means timescales for Santander claims may shift as the legal position develops, and no outcome or payment amount can be guaranteed in advance.
Important Information
DISCLAIMER
This article is intended for general information only and does not constitute financial or legal advice. Whether you are entitled to compensation depends on the specific facts of your agreement and cannot be guaranteed in advance. The regulatory position, including the FCA's PS26/3 redress scheme, remains subject to ongoing Upper Tribunal proceedings and may change. This article was accurate at the time of publication.
Frequently Asked Questions
Did Santander mis-sell PCP agreements?
Not every Santander agreement was mis-sold, but Santander Consumer Finance has confirmed that discretionary commission arrangements operated on some agreements before the 2021 ban. If your dealer's commission depended on the interest rate you were charged and this was not explained, your agreement may qualify for a claim.
How do I know if my Santander agreement had a discretionary commission arrangement?
Santander Consumer Finance will confirm this directly once you raise a complaint. The quickest way to get to that point is to use PCP Missold's free eligibility check, which reviews your specific circumstances at no cost before any claim proceeds.
Do I complain to Santander UK or Santander Consumer Finance?
Motor finance complaints are handled separately from Santander's everyday banking business, through Santander Consumer Finance, which only manages motor finance agreements. PCP Missold directs your complaint to the correct part of the business on your behalf.
Is there a deadline to bring a Santander claim?
Complaint handling rules are set by the FCA and are currently evolving as the PS26/3 redress scheme works through Upper Tribunal proceedings. Deadlines and processes may change as the legal position develops, so it is worth checking your eligibility sooner rather than later.
Key Takeaways
Discretionary commission arrangements on Santander agreements between 2007 and 2021 may mean you are owed a review of how your finance was arranged.
- Santander Consumer Finance has confirmed DCAs operated on some agreements before the 2021 ban
- A 2024 Court of Appeal ruling widened the issue beyond DCAs to other undisclosed commission
- Motor finance complaints go to Santander Consumer Finance, not Santander's everyday banking arm
If you are unsure whether your Santander agreement is affected, the quickest way to find out is a free, no-obligation eligibility check.
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