Toyota Financial Services has been subject to an investigation by the Financial Conduct Authority (FCA), following concerns about discretionary commission arrangements in motor finance agreements. This inquiry, with reference number 312:28, is part of a broader examination into industry practices that may have affected millions of car buyers across the UK.
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 Toyota Financial Services?
Toyota Financial Services (TFS) is a subsidiary of Toyota Motor Corporation, one of the world's largest automotive manufacturers. TFS provides financing solutions for both new and used cars, as well as Lexus vehicles in the UK market. The company offers a range of financial products designed to make car ownership more accessible through various loan options tailored to individual needs.
What Happened: The FCA Investigation
In response to growing concerns about discretionary commission arrangements within motor finance agreements, the Financial Conduct Authority (FCA) launched an investigation into TFS and other lenders. Discretionary commissions are payments made by vehicle manufacturers or dealers to finance companies for recommending their financial products over others. The FCA's inquiry aimed to assess whether these practices were transparent and fair to consumers.
The investigation found that certain discretionary commission arrangements could have led to customers paying more than necessary for their car finance agreements. This is because lenders, including Toyota Financial Services, may have been incentivized to offer higher-cost financing options due to the additional revenue from discretionary commissions.
How Many People Are Affected?
According to the FCA's estimates, 12.1 million eligible agreements (FCA, March 2026) potentially affected by these practices between April 6, 2007, and November 1, 2024. The total estimated redress for all affected customers amounts to £7.5 billion (FCA estimate), with an FCA-estimated average of £829 per eligible agreement.
How to Complain to Toyota Financial Services Directly
If you believe that your motor finance agreement was impacted by the discretionary commission arrangements, you can
complain directly to Toyota Financial Services without incurring any costs. The company provides a dedicated complaints page where customers can submit their concerns:
- Complaints Page: https://www.toyota.co.uk/finance/complaints
- Phone Number: 0344 701 0102
- Post Address: Toyota Financial Services (UK) PLC, Great Burgh, Burgh Heath, Epsom KT18 5UZ
You can also visit the complaints page for detailed guidance on how to submit your complaint. you do not need a claims management company to handle your complaint; you can manage it directly with Toyota Financial Services at no cost.
What to Do Next
Before lodging a formal complaint, gather all relevant documents related to your car finance agreement, including loan agreements and payment records. Check the dates of your agreement to determine if it falls within the period covered by the FCA's investigation (April 6, 2007, to November 1, 2024). Once you have collected this information, proceed with submitting a complaint to Toyota Financial Services.
Timeline: What to Expect
After submitting your complaint, Toyota Financial Services should acknowledge receipt of your submission within five business days. They are required to provide a full response outlining the outcome of their investigation into your concerns within eight weeks from the date of your initial complaint.
If you do not receive a satisfactory resolution after eight weeks, or if you disagree with the outcome provided by TFS, you can escalate your case to the Financial Ombudsman Service (FOS). The FOS provides an impartial service for resolving disputes between consumers and financial services providers.
By following these steps, you can ensure that your complaint is handled effectively without the need for external assistance from claims management companies.
You can complain to your lender directly for free. You do not need a claims management company to check whether you are owed compensation.
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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.