Hyundai vehicles have been commonly sold through
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the period under investigation by the Financial Conduct Authority (FCA), from 6 April 2007 to 1 November 2024. This period saw 12.1 million eligible agreements across the industry, affecting millions of consumers who purchased their vehicles on financing terms that may have been impacted by
discretionary commission arrangements (DCAs) (FCA estimate). Hyundai owners are among those potentially covered by the FCA redress scheme. as part of the FCA redress scheme and car finance compensation scheme.
How Hyundai Vehicles Are Typically Financed
When purchasing a new or used Hyundai vehicle, buyers often opt for financing options such as PCP and HP to manage their expenses better. These agreements are typically provided by lenders including Hyundai Capital UK,
Black Horse,
MotoNovo Finance, and
Close Brothers Motor Finance. Each of these companies offers tailored finance products designed specifically for Hyundai vehicles.
Personal Contract Purchase (PCP)
A PCP agreement allows buyers to pay a deposit and monthly payments over an agreed period, usually up to five years. At the end of this term, customers have several options: they can return the car without further obligations, choose to buy it outright at its residual value, or negotiate a new finance deal for another model.
Hire Purchase (HP)
In contrast, HP is a straightforward loan where the borrower pays off the total cost of the vehicle in fixed monthly instalments. Once all payments are made, ownership transfers to the buyer without any further conditions.
Both PCP and HP agreements have been widely used by Hyundai customers over the years due to their flexibility and affordability compared to outright purchase or leasing options.
The FCA Motor Finance Investigation and Hyundai Owners
The FCA investigation uncovered significant issues surrounding DCAs in motor finance arrangements. These were financial incentives offered to car dealerships for pushing certain financing products, which often resulted in higher interest rates and fees than necessary. In the case of Hyundai owners specifically, these practices may have led them into less favourable deals than they would otherwise choose.
The FCA's findings indicate that 12.1 million eligible agreements (FCA, March 2026) across various brands were affected by DCAs during the specified period (FCA estimate). The total compensation due to consumers could amount to £7.5 billion, with an average claim of approximately £829 per agreement (FCA estimate).
How to Check Your Agreement Agreement Type: Confirm that it is either a PCP or HP contract.
2.
Date Range: Verify that the agreement was made between 6 April 2007 and 1 November 2024.
3.
Lender Identification: Identify which lender financed your Hyundai, namely Hyundai Capital UK, Black Horse, MotoNovo Finance, or Close Brothers Motor Finance.
If all these criteria are met, there is a possibility that the FCA-estimated scheme average is £829 per eligible agreement. under the FCA redress scheme.
Which Lenders Provided Finance For Hyundai?
Hyundai Capital UK
Hyundai Capital UK is a subsidiary of Hyundai Motor Company and offers bespoke finance solutions tailored to Hyundai buyers. Their products include PCP, HP, and balloon options designed to fit various customer needs.
Black Horse
Black Horse provides financing for new and used vehicles from multiple brands, including Hyundai. They offer flexible terms and competitive rates through their network of dealerships.
MotoNovo Finance
MotoNovo Finance is another major player in the car finance market that supports Hyundai customers with its range of financial products aimed at making vehicle ownership more accessible.
Close Brothers Motor Finance
Close Brothers Motor Finance caters to a wide array of automotive brands and models, including those from Hyundai. They provide clear and straightforward financing terms for both new and pre-owned vehicles.
Each lender has unique features but all aim to facilitate car purchases through manageable payment plans.
If you believe your Hyundai finance agreement may have been impacted by DCAs, the first step is to approach your lender directly. You can do this without incurring any costs or involving external parties such as claims management companies. The following are common lenders for Hyundai:
- Hyundai Capital UK
- Black Horse
- MotoNovo Finance
- Close Brothers Motor Finance
Step-by-Step Complaint Process
1.
Gather Documentation: Collect relevant documents including your finance agreement, correspondence with the lender, and any evidence supporting your claim.
2.
Contact Your Lender: Reach out to your finance provider via phone or email. Explain that you are concerned about potential overcharging due to DCAs.
3.
Follow Up: Maintain regular communication with your lender and keep records of all interactions.
4.
Submit a Formal Complaint: If unresolved, submit a formal complaint in writing detailing the issues and requesting a review.
You can complain directly to your lender for free - you do not need a
claims management company.
What Compensation Could Hyundai Owners Receive?
The amount of compensation that eligible Hyundai owners could receive depends on several factors:
- Interest Rate Difference: The discrepancy between actual interest rates paid versus those without DCAs.
- Term and Amount Financed: Longer-term agreements with higher amounts tend to result in larger compensations.
Based on the FCA estimates, the average compensation is around £829 per affected agreement (FCA estimate). However, individual cases vary based on specific circumstances.
If your lender does not resolve your complaint satisfactorily after eight weeks, you have the right to escalate it to the Financial Ombudsman Service (
FOS) free of charge. FOS is an independent body that examines disputes between consumers and financial service providers impartially.
To escalate a complaint:
1.
Complete FOS Application: Fill out the necessary forms on their website or via phone.
2.
Provide Documentation: Submit all relevant documents to support your case.
3.
Await Decision: The Ombudsman will review your file and make a decision based on fairness and reasonableness.
FOS handles complaints relating to Hyundai finance agreements effectively by examining all aspects of the deal in question.
Timeline
The FCA redress scheme is expected to process claims from affected consumers systematically, starting immediately after 1 November 2024. Lenders will begin contacting eligible customers with details on how they can claim their compensation. It is important for Hyundai owners to stay informed through updates from their respective lenders and follow the provided guidance closely.
Sources and References
- Financial Conduct Authority (FCA), 2024
- Office for National Statistics Census 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.