Specialist Motor Finance, a subsidiary of Specialist Motor Finance Ltd, has been at the centre of an FCA investigation into discretionary commission arrangements (DCAs). The Financial Conduct Authority (FCA) found that millions of car finance agreements made between 6 April 2007 and 1 November 2024 may have been mis-sold due to these practices. As a sub-prime motor finance specialist, Specialist Motor Finance has faced scrutiny over its handling of DCAs in the industry.
Latest: The FCA has confirmed the car finance compensation scheme on 30 March 2026. 12.1 million agreements are eligible, with an FCA-estimated scheme average of £829 per eligible agreement. Read the full details.
Who is Specialist Motor Finance?
Specialist Motor Finance Ltd offers car and van financing solutions primarily aimed at individuals with less-than-perfect credit histories. The company’s main operation involves providing sub-prime car finance to a wide range of customers who might have difficulty obtaining traditional bank loans or leases. Their services cater to the needs of those seeking flexible repayment options for both cars and vans.
What Happened?
The Financial Conduct Authority (FCA) initiated an investigation into discretionary commission arrangements within the motor finance industry, including operations by Specialist Motor Finance. The FCA found that some financial institutions may have mis-sold car finance agreements due to these DCA practices. This investigation uncovered issues related to how lenders structured their sales incentives and commissions, which could have led to customers being offered unsuitable or overly expensive financing options.
How Many People Are Affected?
According to the FCA’s estimates, 12.1 million eligible agreements across the UK might be affected by this mis-selling issue. The total redress estimate for these cases is around £7.5 billion (FCA estimate), with an FCA-estimated average of £829 per eligible agreement. This investigation covers a significant period from 6 April 2007 to 1 November 2024, impacting numerous individuals who entered into car finance agreements during this timeframe.
How to Complain to Specialist Motor Finance Directly
If you believe your car finance agreement with Specialist Motor Finance may have been affected by the DCA issue, it is important to take action directly. You can complain to Specialist Motor Finance for free at their dedicated complaints page: https://www.specialistmotorfinance.co.uk/complaints. Alternatively, you can contact them via phone at 0161 242 1200 or email at complaints@specialistmotorfinance.co.uk. For postal complaints, send your letter to Specialist Motor Finance, 2 Europa Trading Estate, Stoneclough Road, Manchester M26 1GG.
You do not need a claims management company for this process. The FCA has made it clear that consumers should handle their complaints directly with the lender at no cost.
What to Do Next?
To start your complaint effectively, gather all relevant documents related to your car finance agreement, such as loan agreements, payment receipts, and correspondence with Specialist Motor Finance. Check if your agreement falls within the specified period (6 April 2007 to 1 November 2024). Once you have compiled this information, submit your complaint directly through their website or by contacting them via phone or email.
Timeline
When submitting a complaint to Specialist Motor Finance, they should respond within eight weeks. If you do not receive a satisfactory response from the lender after this period, you can escalate your case to the
Financial Ombudsman Service (
FOS). The FOS will review your claim and provide an impartial decision.
By following these steps, you can ensure that your concerns are addressed directly without incurring additional costs or relying on third-party services.
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MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.