Volvo Car Finance Claims - PCP and HP Mis-Selling Guide

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Volvo Car Finance Claims - PCP and HP Mis-Selling Guide

Last updated: 28 February 2026

Volvo vehicles were commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the Financial Conduct Authority's (FCA) investigation period from 6 April 2007 to 1 November 2024. This period saw 12.1 million eligible agreements affected across the industry, with an estimated total of £7.5 billion in potential compensation for customers (FCA estimate). If you financed a Volvo during this timeframe, it's important to understand how discretionary commission arrangements (DCAs) may have impacted your agreement.

How Volvo Vehicles are Typically Financed

When purchasing a new or used Volvo, many buyers opt for finance agreements offered by reputable lenders. Common providers include Volvo Car Financial Services, Black Horse, and Barclays Partner Finance. Each of these lenders offers Personal Contract Purchase (PCP) and Hire Purchase (HP) options tailored to the unique needs of Volvo customers.

PCP Agreements

A Personal Contract Purchase is a popular financing option that allows buyers to make lower monthly payments compared to HP by only paying interest on the depreciation of the vehicle. At the end of the agreement, you have the option to return the car or purchase it for its Guaranteed Future Value (GFV).

Hire Purchase Agreements

Hire Purchase provides full ownership at the end of the term once all payments are made. This is a straightforward financing method where the buyer pays off the total cost of the vehicle over an agreed period, typically with higher monthly instalments than PCP.

The FCA Motor Finance Investigation and Volvo Owners

The FCA investigation into car finance focused on discretionary commission arrangements (DCAs) that lenders were allowed to use during sales. These DCAs were intended as incentives for dealers but often resulted in inflated interest rates for customers, particularly those with lower credit scores or who financed their vehicles through less transparent channels. For Volvo owners specifically, this meant that the interest rate they paid on their PCP or HP agreement might have been higher than it should have been. The FCA estimates that 12.1 million eligible agreements (FCA, March 2026) across all makes and models were affected, resulting in a total estimated compensation of £7.5 billion (FCA estimate). On average, eligible car finance customers the FCA-estimated scheme average is £829 per eligible agreement.

How to Check Your Agreement

Date Range: The period of interest is from 6 April 2007 to 1 November 2024. Any agreements falling within this timeframe are potentially eligible for review.
Lender Information: Identify the lender involved in financing your Volvo purchase. Common providers include Volvo Car Financial Services, Black Horse, and Barclays Partner Finance.

Which Lenders Provided Finance for Volvo?

Several major lenders provided finance options specifically tailored to Volvo buyers during the investigation period:

Volvo Car Financial Services

As a subsidiary of Volvo Cars Group, this entity offers financing directly through Volvo dealerships. They are well-equipped to handle customer inquiries about potential compensation and provide straightforward pathways for complaints.

Black Horse

Black Horse is another significant player in the car finance market that often partners with Volvo dealers to offer competitive loan options to customers.

Barclays Partner Finance

Barclays Partner Finance provides a range of flexible finance solutions, including PCP and HP agreements. They have established processes for handling customer disputes related to DCAs.

How to Complain Directly to Your Lender for Free

If you suspect your Volvo car finance agreement was impacted by DCAs during the FCA investigation period, you can start by contacting your lender directly. For example:

Volvo Car Financial Services: Reach out via their customer service line or website.
Black Horse: Utilize their dedicated support channels to file a complaint.
Barclays Partner Finance: Follow their outlined procedures for addressing customer concerns.

You can complain directly to your lender for free - you do not need a claims management company. This approach ensures transparency and minimizes any unnecessary costs or complications associated with third-party involvement.

What Compensation Could Volvo Owners Receive?

Based on the FCA's estimates, eligible customers could receive compensation ranging from £100 to over £2,000 (FCA estimate), with an average of approximately £829 per affected agreement. The exact amount depends on several factors including:

Interest Rate Difference: Higher interest rates due to DCAs would naturally result in higher compensation.
Term and Amount Financed: Longer terms or larger amounts financed may also contribute to a greater potential compensation.

Escalating to the Financial Ombudsman Service

If your complaint to Volvo Car Financial Services, Black Horse, or Barclays Partner Finance is not resolved within eight weeks, you have the option to escalate it to the Financial Ombudsman Service (FOS). The FOS provides an independent and free service for resolving disputes between consumers and financial services providers. They can review your case impartially and make binding decisions.

Timeline

The FCA redress scheme is expected to process complaints efficiently, but timelines may vary based on the volume of claims submitted. For those who have already filed their complaints directly with their lender or through the FOS, it's important to stay patient as these processes can take several months. For new claims initiated after 1 November 2024, the timeline is expected to be shorter due to streamlined procedures established by the FCA.

Sources and References

Financial Conduct Authority (FCA), 2024
Office for National Statistics (ONS) 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.

--- 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.

Frequently Asked Questions

How many people have made car finance claims against Volvo?

As of November 2024, 12.1 million eligible agreements were in place across the UK (FCA estimate), and a significant number of these could potentially involve PCP or HP mis-selling by lenders like Volvo. However, specific figures for claims made directly against Volvo are not publicly available.

What should I do if I suspect my Volvo car finance agreement was mis-sold?

If you believe your Volvo car finance agreement, whether it's a PCP or HP plan, was mis-sold to you, the first step is to review your contract and gather any relevant documentation. You can then complain directly to Volvo for free without using any claims management company.

What does the FCA scheme cover

The amount of compensation you might receive varies widely depending on the specifics of your case. On average, successful car finance claims can result in an award of £829 (FCA estimate). However, this is just an average; some cases may warrant much higher awards.

What happens if Volvo does not resolve my car finance complaint?

If your complaint to Volvo regarding a mis-sold PCP or HP agreement is unresolved, you can escalate it to the Financial Ombudsman Service (FOS). The FOS provides an independent review and can make binding decisions on complaints against financial service providers like Volvo.

Is there a specific time limit for making a car finance claim against Volvo?

Yes, there is usually a time limit of six months from the date you received your final response from Volvo to refer your case to the Financial Ombudsman Service (FOS). It's important to act within this timeframe if you wish to pursue further action.

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.