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Hampshire, with a population of 1,400,000 (ONS Census 2021), has seen an estimated 132,300 drivers potentially affected by motor finance mis-selling during the period from 6 April 2007 to 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates). This widespread issue has prompted many residents to seek information on how they can address concerns related to their car finance agreements.
How Motor Finance Mis-selling Affected Hampshire
Local dealerships in Hampshire, including Caffyns Hampshire, Harwoods Hampshire, Lookers Hampshire, and Hendy Group Hampshire, have been implicated in the sale of
Personal Contract Purchase (PCP) and
Hire Purchase (HP) agreements that may have involved misleading practices. These arrangements were facilitated by major lenders such as
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 Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an extensive investigation into the
discretionary commission arrangements used by lenders in the motor finance industry. This probe uncovered that 12.1 million eligible agreements (FCA, March 2026) during the specified period (FCA estimate). These agreements resulted in a total compensation of £7.5 billion (FCA estimate), with an average payout of around £829 per agreement (FCA estimate).
The investigation highlighted practices where lenders paid discretionary commissions to dealerships based on the type and volume of finance products sold, potentially incentivising sales staff to push customers towards more expensive or unsuitable finance options.
How Hampshire Residents Can Check Their Finance Agreements
Hampshire residents who suspect that they may have been affected by motor finance mis-selling can take steps to verify their agreements. First, it is essential to check the date of your car purchase and finance agreement to ensure it falls within the period from 6 April 2007 to 1 November 2024. Next, gather all relevant documents including the contract, loan agreement, and any correspondence with your lender.
Look for specific signs that indicate mis-selling such as:
- Being pushed towards a higher finance option without clear explanations.
- Incomplete or misleading information about interest rates and total cost of credit.
- Hidden fees or charges not mentioned during the sales process.
- Misleading marketing materials used by dealerships to promote certain finance products.
Residents of Hampshire do not need a
claims management company to address concerns related to their motor finance agreements. You can complain directly to your lender for free and follow these steps:
1.
Identify the Lender: Determine which major lenders were involved in your finance agreement, such as Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, or Alphera Financial Services.
2.
Prepare Your Complaint: Gather all relevant documentation and clearly outline the issues you encountered with your finance agreement.
3.
Submit Your Complaint: Send your complaint to the lender's customer service department using their official contact details provided on their website.
If your complaint is not resolved satisfactorily, you can escalate it to the
Financial Ombudsman Service (
FOS) for free and impartial review. The FOS provides a valuable avenue for resolving disputes between consumers and financial firms without needing legal representation or additional fees.
Sources and References
- Financial Conduct Authority (FCA)
- Office for National Statistics Census 2021
- 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.