Motor Finance Claims Bath - FCA Mis-Selling Investigation

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Motor Finance Claims Bath - FCA Mis-Selling Investigation

Last updated: 27 February 2026

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Bath, a city with a population of 94,000 (ONS Census 2021), has been affected by motor finance mis-selling that may have impacted an estimated 8,883 residents (calculated using ONS Census 2021 population data and FCA estimates). This issue stems from the Financial Conduct Authority’s (FCA) investigation into discretionary commission arrangements in the automotive financing industry.

How Motor Finance Mis-Selling Affected Bath

Local dealerships such as Vospers Bath, Hendy Group Bath, Dick Lovett Bath, and Wessex Garages Bath sold Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements to customers. These agreements were facilitated by major lenders operating in the area including Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and [Alphera](https://mlj.org.uk/lenders/alphera-financial-services) Financial Services (BMW). The FCA’s investigation revealed that these dealerships often received discretionary commissions from finance providers for selling PCP or HP agreements to customers. This commission-based model could have led to mis-selling practices where the interests of the dealership were prioritised over those of the customer.

The FCA Motor Finance Investigation

From 6 April 2007 to 1 November 2024, a total of 12.1 million eligible agreements (FCA, March 2026) across the UK may have been affected by mis-selling practices. This led to an estimated £7.5 billion in overcharges and unfair treatment (FCA estimate), with an average of £829 per customer (FCA estimate). The FCA found that discretionary commissions created a conflict of interest, which could have resulted in customers being sold finance products that were not in their best interests. This investigation highlighted the need for transparency and fairness in the motor finance industry.

How Bath Residents Can Check Their Finance Agreements

Bath residents who suspect they may have been affected by mis-selling practices should review their finance agreements carefully. Key dates to consider are from 6 April 2007 through 1 November 2024, as this period was identified by the FCA for potential mis-selling. When reviewing your agreement, look for any evidence of discretionary commissions or other incentives that may have influenced the dealership’s recommendations. Gather all relevant documents such as finance agreements, communication records, and purchase invoices to support your complaint.

How to Complain Directly to Your Lender for Free

Major lenders operating in Bath include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). You can complain directly to your lender for free without the need for a claims management company. To start the process, contact your lender’s customer service department or visit their website to submit a complaint. Provide them with all relevant documentation and any evidence that you believe shows mis-selling occurred during the agreement period from 6 April 2007 to 1 November 2024. If your lender does not resolve the issue satisfactorily, you can escalate your complaint to the Financial Ombudsman Service (FOS) for free. The FOS is an independent body that provides a fair resolution service for financial disputes.

Sources and References

ONS Census 2021
FCA estimates (FCA, 2024)
Financial Conduct Authority (FCA)
Financial Ombudsman Service (FOS)
Car Finance Compensation in Your Area

The FCA confirmed that 12.1 million motor finance agreements across the UK qualify for compensation. The FCA-estimated scheme average of £829 per eligible agreement per agreement, totalling £7.5 billion in redress. If you took out PCP or HP car finance between 6 April 2007 and 1 November 2024, your agreement may be eligible regardless of where you live in the UK.

The final deadline to complain is 31 August 2027. You can complain to your lender directly for free. You do not need a claims management company.

Frequently Asked Questions

How many drivers in Bath are potentially affected by motor finance mis-selling?

Based on population data from the ONS Census 2021 and FCA estimates of motor finance agreements, an estimated 8,883 drivers in Bath may be impacted (calculated using ONS Census 2021 population data and FCA estimates).

What should I do if I suspect my motor finance agreement was mis-sold to me?

If you believe your motor finance agreement was not properly explained or that it does not suit your needs, you can complain directly to your lender for free. They are required by law to review and respond to complaints.

What is the average cost of compensation for mis-sold motor finance agreements in Bath?

The average amount paid out as compensation for mis-sold motor finance agreements is around £829 (FCA estimate).

How many motor finance agreements are estimated to be affected by mis-selling issues across the UK, including Bath?

As of 2024, an estimated 12.1 million eligible agreements (FCA, March 2026) have been affected by potential mis-selling issues (FCA estimate), which includes drivers in Bath and other parts of the country.

Important: MLJ.org.uk is an independent information resource. We are not a claims management company, solicitor, law firm, or financial adviser. We do not process claims, take fees, or provide advice. Where the law gives you a right to complain or claim directly (to a lender, council, FOS, court, or regulator), you can do so without paying a third party. MLJ.org.uk is operated by Copious Ltd, registered in England and Wales, company number 11437826.