Motor Finance Claims South East - FCA Investigation

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Motor Finance Claims South East - FCA Investigation

Last updated: 27 February 2026

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The motor finance market in the South East has been under scrutiny due to a significant number of mis-selling cases. Approximately 876,771 drivers in the region have been potentially affected by this issue according to calculations using ONS Census 2021 population data and FCA estimates. With a total regional population of 9,278,000 (ONS Census 2021), it is clear that many residents have been impacted.

How Motor Finance Mis-selling Affected South East

During the period from 6 April 2007 to 1 November 2024, motor finance mis-selling practices were widespread across the region. Local dealerships such as Caffyns South East, Harwoods South East, Lookers South East, and Hendy Group South East reportedly engaged in these practices by selling Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements to their customers. These dealerships partnered with major lenders including [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 mis-selling occurred through discretionary commission arrangements that incentivised sales staff to prioritise finance deals over the best interests of customers. These practices led to many drivers in South East being sold motor finance agreements that were not suitable for their financial circumstances or needs.

The FCA Motor Finance Investigation

In response, the Financial Conduct Authority (FCA) launched an investigation into these practices. It was found that 12.1 million eligible agreements (FCA, March 2026) across the UK may have been affected by mis-selling (FCA estimate). This issue resulted in a total of £7.5 billion being paid out under potentially unsuitable finance deals (£829 average per eligible agreement per agreement, FCA estimate). The investigation highlighted how discretionary commission arrangements created conflicts of interest for dealers and lenders, leading to customers often being pushed into high-cost or inappropriate finance agreements.

How South East Residents Can Check Their Finance Agreements

Residents in the South East who suspect they may have been sold an unsuitable motor finance agreement should review their contracts carefully. Key dates to consider are from 6 April 2007 up until 1 November 2024, as these are when mis-selling practices were most prevalent. To Information about agreements covered by the schemegreements, finance quotes, and correspondence with the dealership or lender. Look for signs such as high interest rates, excessive fees, or agreements that did not match your financial situation at the time of purchase.

How to Complain Directly to Your Lender for Free

If you believe your motor finance agreement was sold to you unsuitably, you can complain directly to your lender free of charge. Major lenders operating in South East include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services. You do not need a claims management company; the process is straightforward and does not involve any upfront costs. If your complaint is not resolved to your satisfaction by the lender, you can escalate it to the Financial Ombudsman Service (FOS) as an independent free service.

Sources and References

FCA estimates on motor finance agreements: 12.1 million eligible agreements (FCA, March 2026), £7.5 billion total, £829 average per eligible agreement per agreement.
Population data for South East: ONS Census 2021
Local dealership groups in South East: Caffyns South East, Harwoods South East, Lookers South East, Hendy Group South East
Major lenders operating in the area: Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, Alphera Financial Services (BMW)
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 the South East may have been affected by motor finance mis-selling?

An estimated 876,771 drivers in the South East region may have been impacted by motor finance mis-selling between 6 April 2007 and 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates).

What should I do if I suspect I was a victim of motor finance mis-selling in the South East?

If you believe you have been affected by motor finance mis-selling, it is important to review your agreement carefully. You can complain directly to your lender for free and seek guidance from independent sources like MLJ.org.uk.

What are some common signs of motor finance mis-selling in the South East?

Common signs include being pressured into a loan you cannot afford, receiving false information about your credit score or available options, and not being informed about cheaper alternatives such as local dealership financing deals offered by groups like County Motors Group in Kent.

What is the estimated total value of mis-sold motor finance agreements in the South East?

The total value of mis-sold motor finance agreements across the UK, which would include the South East region, is estimated to be £7.5 billion (FCA, March 2026) 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.