Motor Finance Claims Highland - FCA Investigation

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Motor Finance Claims Highland - FCA Investigation

Last updated: 27 February 2026

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Highland, a Scottish council area with a population of 235,500 (ONS Census 2021), has been affected by motor finance mis-selling as estimated by FCA data. Approximately 22,255 drivers in Highland may have entered into potentially unfair Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements between 6 April 2007 and 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates).

How Motor Finance Mis-selling Affected Highland

Local dealerships such as Arnold Clark Highland, Peter Vardy Highland, Eastern Western Motor Group Highland, and Macklin Motors Highland sold PCP and HP finance agreements to residents. These dealership groups were known to have engaged in these sales practices during the specified period. Major lenders operating in the area include 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 investigation into motor finance mis-selling after discovering that dealerships had been paid discretionary commission arrangements by lenders. This meant that dealers could receive additional payments for steering customers towards more expensive finance deals, such as PCP and HP agreements, instead of straightforward loans or cash purchases. The FCA found that 12.1 million eligible agreements (FCA, March 2026), with a total value of £7.5 billion (FCA estimate). On average, each affected driver could be due a refund of £829 (FCA estimate).

How Highland Residents Can Check Their Finance Agreements

Highland residents can check their finance agreements by reviewing the terms and conditions provided at the time they purchased their vehicle. Key elements to look for include:

Dates: Any agreement signed between 6 April 2007 and 1 November 2024.
Finance type: Whether it was a PCP, HP, or another form of finance that may have been influenced by discretionary commission arrangements.
Documentation: Gather all relevant documents such as the loan agreement, terms and conditions, and any correspondence with your lender.

How to Complain Directly to Your Lender for Free

Highland residents can complain directly to their lenders without needing to use a claims management company. The major lenders operating in Highland are Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). You can contact them directly for free to seek redress regarding any unfair finance agreement. If your lender does not resolve the issue satisfactorily, you can escalate your complaint to the Financial Ombudsman Service (FOS) at no cost. The FOS provides an independent review and resolution service, which is a valuable resource for resolving disputes with financial institutions.

Sources and References

Office of National Statistics (ONS), Census 2021
Financial Conduct Authority (FCA), 2024
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 Highland might be affected by motor finance mis-selling?

Based on population data from the ONS Census 2021 and FCA estimates, approximately 22,255 drivers in Highland could potentially be affected by motor finance mis-selling.

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

If you believe your motor finance agreement was mis-sold, it is advisable to review the terms and conditions of your contract carefully. You can also complain directly to your lender for free without involving any claims management company.

Why are Highland drivers particularly at risk from motor finance mis-selling?

Highland residents may face unique challenges that could increase their vulnerability to mis-sold motor finance agreements, such as limited dealership options and higher costs associated with vehicle ownership. It is important for residents to understand their rights and seek professional advice if necessary.

What are the typical outcomes when a motor finance agreement is found to be mis-sold?

When a motor finance agreement is determined to have been mis-sold, affected consumers may receive compensation or relief measures from lenders. These can include adjustments to payment terms or even full refunds, depending on the specific circumstances of the case.

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.