Commission disclosure in finance

Customers should understand how brokers are paid before committing to finance.

Why this matters

Finance brokers and motor dealers may receive commission from lenders. Recent UK motor finance litigation and FCA work have made commission disclosure a major customer-trust issue. Customers should be given clear information about broker status, whether commission may be received, how that commission may affect the arrangement, and how to ask for more detail.

This page is not legal advice. The legal position has changed through court decisions and regulatory review, and outcomes depend on the agreement, timing, disclosure, customer relationship and commission model. If you are unsure, ask the broker or lender directly and consider independent advice.

What a borrower can ask

Is commission being paid?

Who is paying it?

How is it calculated?

Could it affect the rate or terms?

Is there a broker fee as well?

Can I have the answer in writing?

Hart Asset Finance approach

Hart Asset Finance is a broker, not a lender. Where commission may be received, the customer should be told clearly and should be able to ask for more information before signing. The goal is that a borrower understands the finance route, the broker role, the cost, the documents and the commercial relationship before proceeding.