Motor Finance Claims Middlesbrough - FCA Investigation

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Motor Finance Claims Middlesbrough - FCA Investigation

Last updated: 27 February 2026

Middlesbrough - mlj.org.uk — Photo by chakri Sriperamboodoor on Pexels

Middlesbrough, a town with a population of 140,700 (ONS Census 2021), has been affected by motor finance mis-selling. An estimated 13,296 drivers in Middlesbrough may have been impacted based on calculations using ONS Census 2021 data and FCA estimates.

How Motor Finance Mis-selling Affected Middlesbrough

Motor finance mis-selling occurred through various dealerships in Middlesbrough. Local dealership groups such as Lookers Middlesbrough, Vertu Motors Middlesbrough, Bristol Street Motors Middlesbrough, and Jennings Motor Group Middlesbrough likely played a significant role in selling Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements to unsuspecting customers. Major lenders operating in the area included [Black Horse](https://mlj.org.uk/lenders/black-horse) (Lloyds Banking Group), MotoNovo Finance, [Close Brothers](https://mlj.org.uk/lenders/close-brothers-motor-finance) 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

In response to widespread concerns about motor finance mis-selling, the Financial Conduct Authority (FCA) launched an investigation. One of the key issues uncovered was the practice of discretionary commission arrangements, where lenders paid dealerships extra fees based on the type and volume of agreements sold. This arrangement incentivised dealers to sell more profitable but potentially unsuitable finance products. According to FCA estimates, 12.1 million eligible agreements (FCA, March 2026) by this issue from 6 April 2007 to 1 November 2024 (FCA estimate), resulting in an estimated total of £7.5 billion in mis-sold agreements (FCA estimate) with the average compensation claim amounting to £829 (FCA estimate).

How Middlesbrough Residents Can Check Their Finance Agreements

To determine if your finance agreement was mis-sold, residents should review their contract documentation thoroughly. Look for any indications of high commission payments or incentives that may have influenced the type of agreement you were offered. The relevant period to check is from 6 April 2007 to 1 November 2024 (FCA estimate). Gather all documents related to your finance agreement, including sales contracts and loan agreements, and review them for any signs of mis-selling.

How to Complain Directly to Your Lender for Free

If you believe you have been affected by motor finance mis-selling, it is important to know that you can complain directly to your lender for free. 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 customer service teams who can assist with complaints. You do not need a claims management company to handle your complaint. Instead, contact the lender directly using their customer support channels, which may include phone calls or email correspondence. If you are unsatisfied with the initial response from your lender, you can escalate your case to the Financial Ombudsman Service (FOS) for free and impartial review.

Sources and References

"12.1 million eligible agreements (FCA, March 2026)" figure: FCA estimate
"£7.5 billion total" figure: FCA estimate
"£829 average per eligible agreement" compensation claim amount: FCA estimate
Population of Middlesbrough: ONS Census 2021
Affected drivers calculation based on population data and FCA estimates
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 Middlesbrough are estimated to be affected by motor finance mis-selling?

Based on calculated estimates using ONS Census 2021 population data and FCA estimates, around 13,296 drivers in Middlesbrough may have been impacted by motor finance mis-selling.

What should I do if I suspect I was sold a car loan incorrectly at a dealership in Middlesbrough?

If you believe you were sold a car loan incorrectly, you can complain directly to your lender for free. You do not need a claims management company.

How much money is involved in motor finance mis-selling cases across the UK?

The FCA estimates that £7.5 billion (FCA, March 2026) has been paid out in compensation related to motor finance mis-selling from 6 April 2007 to 1 November 2024.

What is the average amount of compensation received by individuals affected by motor finance mis-selling?

The FCA estimates that on average, each individual receives around £829 in compensation for motor finance mis-selling cases from 6 April 2007 to 1 November 2024.

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.