To all our valued customers and partners,
Following a recent Court of Appeal decision which considered the payment of commission from lenders to motor dealers, we’ve temporarily paused accepting new finance proposals while we make important updates to our processes. This decision allows us to ensure we continue providing the highest standard of service and support to all who finance with us.
If you are an existing customer, please rest assured—your finance agreement remains unaffected, and you will continue to receive the same reliable service and support as always. We appreciate your patience and understanding as we work to enhance our services. Our commitment to your experience and satisfaction remains our top priority and we aim to be open for new business quickly.
We are pausing new business so that we can address the legal implications of the recent Court of Appeal decision and make important updates to our processes.
We aim to be back as quickly as possible – this will be once we have introduced new processes that we feel are required as a result of this court decision.
We are unable to comment on any action other lenders may or may not take. However, it is unlawful for commission to be paid to dealers or brokers without explicit consent from the customer after the dealer has disclosed existence, nature and amount of commission.
Applications accepted prior to 12:00 on Monday 28th October will be honoured and paid out in the normal way up to a maximum of two weeks from midday on Monday.
Aldermore customers that already have an agreement with us will continue to receive support and the same level of service.
Whilst we are working through viable solutions, all proposals will need to be put on pause.
Whilst we are working through a viable solution, proposals will need to be put on pause.
The industry will need to move to fuller commission disclosure with explicit consent from the customer before entering into the financial agreement. This will include detail of the relationship between dealer or broker and funder, the existence and amount of commission and how it was calculated.
FirstRand is concerned by the judgement and does not agree with its findings. FirstRand believes that the commission disclosures in both the Wrench and Johnson agreements were in accordance with all legal and regulatory requirements. Given the importance of this issue, FirstRand believes these matters should now be heard by the UK Supreme Court which only considers matters of law with wider public importance.
We would also encourage you to read the FirstRand response to the rulings here.