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Perth and Kinross, with a population of 153,800 (ONS Census 2021), has seen an estimated 14,534 drivers potentially affected by motor finance mis-selling issues since April 6, 2007. This figure is based on calculations using ONS Census 2021 population data and FCA estimates. The Financial Conduct Authority (FCA) investigation into the practices of major lenders operating in Perth and Kinross sheds light on widespread mis-selling concerns that have affected many local residents.
How Motor Finance Mis-Selling Affected Perth and Kinross
Motor finance agreements, particularly
Personal Contract Purchase (PCP) and
Hire Purchase (HP), were widely sold by multiple dealerships across Perth and Kinross. Local dealership groups such as Arnold Clark Perth and Kinross, Peter Vardy Perth and Kinross, Eastern Western Motor Group Perth and Kinross, and Macklin Motors Perth and Kinross played significant roles in selling these agreements to local customers. Major lenders like
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) were also involved.
The FCA investigation revealed that many dealerships offered incentives for their sales staff by including a
discretionary commission arrangement. This practice encouraged them to push customers towards more expensive finance options without fully explaining the risks and costs associated with such agreements. As a result, consumers in Perth and Kinross may have entered into agreements they did not fully understand or could not afford.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance practices following concerns raised by consumer groups and individual complaints about mis-selling issues. From April 6, 2007, to November 1, 2024, the FCA estimates that 12.1 million eligible agreements (FCA, March 2026) across the UK, leading to a total of £7.5 billion in overcharges (FCA estimate). The FCA-estimated average per eligible agreement: £829.
The investigation uncovered widespread practices where dealerships and lenders used discretionary commissions to influence sales staff to prioritise more profitable finance deals at the expense of customer understanding and suitability.
How Perth and Kinross Residents Can Check Their Finance Agreements
Residents in Perth and Kinross who suspect they may have been affected by motor finance mis-selling should review their agreements carefully. Key dates to look for are from April 6, 2007, to November 1, 2024, as this period covers the FCA investigation timeframe.
To check your agreement:
- Review the terms and conditions of your finance deal.
- Look at any documentation provided by the dealership or lender at the time of purchase.
- Check for evidence of additional charges or commissions that were not clearly explained during the sales process.
If you find discrepancies or unclear terms, it is advisable to gather all relevant documents and reach out directly to your lender for clarification.
You can complain directly to your lender for free without needing a
claims management company. Major lenders operating in Perth and Kinross include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW).
When contacting your lender:
- Provide detailed information about the issues you have identified.
- Request a full review of your agreement according to FCA guidelines.
If your complaint is not resolved satisfactorily, or if you need further assistance, you can escalate it to the
Financial Ombudsman Service (
FOS) for free. The FOS provides an impartial service and will assess whether the lender acted fairly in handling your complaint.
Sources and References
- Financial Conduct Authority (2024)
- Office for National Statistics (ONS Census 2021)
- Financial Ombudsman Service
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.