Ford vehicles have been commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the FCA investigation period from 6 April 2007 to 1 November 2024. This period has affected a significant number of car buyers, with an estimated 12.1 million eligible agreements (FCA, March 2026) across the industry (FCA estimate).
How Ford Vehicles are Typically Financed
When purchasing a new or used Ford vehicle, many buyers opt for finance arrangements such as PCP and HP to manage their budget more effectively. Common lenders providing finance options for Ford vehicles include Ford Credit,
Black Horse,
Santander Consumer Finance, and
MotoNovo Finance.
Personal Contract Purchase (PCP)
A PCP agreement allows you to make lower monthly payments by agreeing to a balloon payment at the end of the contract term. This final payment enables you to own the vehicle or return it if you choose not to continue financing it.
Hire Purchase (HP)
In contrast, HP agreements require you to pay off the full cost of the vehicle over an extended period. At the end of this agreement, you become the legal owner of the car outright without any further payments required.
The FCA Motor Finance Investigation and Ford Owners
The Financial Conduct Authority (FCA) launched an investigation into
discretionary commission arrangements (DCAs), which were a common practice in motor finance from 2007 to 2024. These DCAs involved lenders paying car dealers additional commissions for steering customers towards specific financing products that might not have been the most beneficial option for them.
According to the FCA, an estimated £7.5 billion has been attributed to unfair practices during this period (FCA estimate). For Ford owners specifically, these practices could have resulted in higher interest rates and less favourable terms on their finance agreements compared to what they would have received without DCAs.
How to Check Your Agreement Look for:
- Agreement Type: PCP or HP
- Date Range: 6 April 2007 to 1 November 2024
- Lender Information: Ford Credit, Black Horse, Santander Consumer Finance, MotoNovo Finance
If your agreement meets these criteria and was arranged during the specified period, there is a possibility that it may have been impacted by unfair practices related to DCAs.
Which Lenders Provided Finance for Ford?
Several major lenders commonly provided finance for Ford vehicles:
Ford Credit
Ford Credit offers financing options directly through Ford dealerships. They are known for providing flexible terms and competitive rates, though the FCA investigation revealed instances where these terms may have been influenced by DCAs.
Black Horse
Black Horse is a well-known car finance provider that works with multiple brands, including Ford. The company has been involved in several cases of unfair practices due to DCAs during the investigation period.
Santander Consumer Finance
Santander Consumer Finance provides financing options for new and used vehicles across various manufacturers, including Ford. Like other lenders, they were subject to scrutiny by the FCA regarding the use of DCAs.
MotoNovo Finance
MotoNovo Finance is another major player in the car finance market that has partnered with Ford dealerships. The lender's practices have been reviewed as part of the FCA investigation for potential unfairness due to DCAs.
If you suspect your Ford finance agreement was affected by DCAs, you can start the complaints process directly with your lender without incurring any costs. The lenders mentioned above (Ford Credit, Black Horse, Santander Consumer Finance, MotoNovo Finance) all have established procedures for handling customer complaints.
To initiate a complaint, contact your lender through their official website or customer service hotline and request an investigation into potential unfair practices related to DCAs. You can also refer to the FCA’s guidance on
how to complain effectively about motor finance agreements (FCA, 2024).
Important: "You can complain directly to your lender for free - you do not need a
claims management company."
What Compensation Could Ford Owners Receive?
Based on FCA estimates, affected car owners could be covered by the FCA redress scheme. averaging around £829 per agreement (£829 average per eligible agreement, FCA estimate). The actual amount of compensation will vary depending on several factors such as the interest rate difference, term length, and total amount financed. The FCA's redress scheme aims to provide fair recompense based on individual cases.
If your complaint is not resolved satisfactorily by your lender after eight weeks, you have the right to escalate it to the Financial Ombudsman Service (
FOS) for a free and impartial review. The FOS will evaluate your case based on the evidence provided and decide whether compensation is warranted under the circumstances.
Timeline
The timeline for processing complaints through the FCA redress scheme varies but generally follows these stages:
- Initial Review: Your lender investigates your complaint within eight weeks.
- Escalation to FOS (if necessary): If unresolved, you can escalate to FOS after eight weeks.
- FOS Decision: The FOS will review and make a decision based on the evidence.
The exact timeline for receiving compensation may vary depending on individual cases but is expected to be completed within several months of initiating the complaint process.
Sources and References
- Financial Conduct Authority (FCA). "Estimates and figures related to motor finance agreements." 2024.
- Office for National Statistics (ONS), Census data. 2021.
Key FCA Figures
The FCA confirmed on 30 March 2026: 12.1 million eligible agreements, £829 average compensation per agreement, £7.5 billion total redress at 75% consumer uptake, and £9.1 billion total cost to firms. The scheme covers agreements from 6 April 2007 to 1 November 2024. Two deadlines apply: 30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014. Final complaint deadline: 31 August 2027.
You can complain to your lender directly for free. You do not need a claims management company.
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MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.