Motor Finance Claims Leicestershire - FCA Investigation

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Motor Finance Claims Leicestershire - FCA Investigation

Last updated: 27 February 2026

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Leicestershire residents may be surprised to learn that approximately 67,378 drivers in their county have been affected by motor finance mis-selling practices between 6 April 2007 and 1 November 2024. This estimate is based on calculations using ONS Census 2021 population data and FCA estimates for the region (calculated using ONS Census 2021 population data and FCA estimates). With a total population of 713,000 according to the ONS Census 2021, this issue has significant implications for many local car owners.

How Motor Finance Mis-selling Affected Leicestershire

Local dealerships in Leicestershire played a crucial role in selling Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements. Prominent dealership groups such as Inchcape Leicestershire, Pendragon Leicestershire, Marshall Motor Group Leicestershire, and Sytner Leicestershire were among those involved in the sale of these financial products. Major lenders operating in the area included 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 industry practice at the time allowed for discretionary commission arrangements between dealerships and finance companies, which were later found to be misleading. These practices led many consumers in Leicestershire to enter into agreements that they may not have fully understood or agreed to under normal circumstances.

The FCA Motor Finance Investigation

In 2018, the Financial Conduct Authority (FCA) launched a full investigation into motor finance mis-selling practices across the UK. The investigation uncovered widespread issues with discretionary commission arrangements that led to the sale of over 12.1 million eligible agreements (FCA, March 2026) worth £7.5 billion in total (FCA estimate). On average, each affected agreement involved an estimated loss of £829 (FCA estimate). The FCA found that many consumers were misled into paying inflated prices for their vehicles due to hidden commissions and undisclosed fees. This period, from 6 April 2007 to 1 November 2024, saw significant changes in regulatory oversight as the industry was forced to address these practices.

How Leicestershire Residents Can Check Their Finance Agreements

Leicestershire residents who suspect they may have been affected by motor finance mis-selling can take several steps to check their agreements. First, gather all relevant documentation from when you purchased your vehicle, including contracts, letters from lenders, and any correspondence with dealerships. Look for dates between 6 April 2007 and 1 November 2024. Pay close attention to terms related to discretionary commissions, fees, and the total cost of your finance agreement. If you notice discrepancies or feel misled by your dealership or lender, it is important to review these documents carefully and seek further advice from a financial advisor or legal professional.

How to Complain Directly to Your Lender for Free

You can complain directly to your lender for free without needing the assistance of a claims management company. Major lenders such as Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW) all have dedicated teams to handle complaints. When lodging a complaint with your lender, clearly outline the issues you encountered and provide any supporting documentation. If your lender's response is unsatisfactory or if they do not respond within eight weeks, you can escalate your case to the Financial Ombudsman Service (FOS), which offers free and impartial dispute resolution services.

Sources and References

FCA
Financial Ombudsman Service (FOS)
Office for National Statistics (ONS Census 2021)
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 Leicestershire are potentially affected by motor finance mis-selling?

Based on calculations using ONS Census 2021 population data and FCA estimates, approximately 67,378 drivers in Leicestershire may be affected by motor finance mis-selling (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 in Leicestershire?

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

How common are motor finance agreements in Leicestershire?

Across the UK, including regions like Leicestershire, there were 12.1 million eligible agreements (FCA, March 2026) as of FCA estimates (FCA estimate). This indicates a significant number of residents may be involved with such agreements.

What is the average cost recovery for drivers affected by mis-sold motor finance in Leicestershire?

According to FCA estimates, drivers across the UK who have successfully resolved issues related to mis-sold motor finance have recovered an average of £829 (FCA estimate).

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.