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Aberdeen City, with a population of 228,670 (ONS Census 2021), has been significantly impacted by motor finance mis-selling practices. It is estimated that approximately 21,609 drivers in Aberdeen City have potentially been affected by these issues, based on calculations using ONS Census 2021 population data and FCA estimates.
How Motor Finance Mis-Selling Affected Aberdeen City
The sale of
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements in Aberdeen City was widespread among local dealerships. Dealership groups such as Arnold Clark Aberdeen City, Peter Vardy Aberdeen City, Eastern Western Motor Group Aberdeen City, and Macklin Motors Aberdeen City were involved in selling these products. These dealerships often partnered with major lenders operating in the area, including
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).
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance mis-selling after discovering that lenders had offered
discretionary commission arrangements to dealerships. These commissions were based on the number of agreements sold and the associated profit margins, which incentivised dealerships to sell more expensive or less suitable products to customers. The FCA found that these practices led to widespread mis-selling across 12.1 million eligible agreements (FCA, March 2026) between 6 April 2007 and 1 November 2024. Affected consumers collectively lost £7.5 billion (FCA estimate) (FCA, March 2026).
How Aberdeen City Residents Can Check Their Finance Agreements
Residents in Aberdeen City who suspect they may have been affected by motor finance mis-selling should review their car finance agreements carefully. Key dates to check are from 6 April 2007 to 1 November 2024, as these cover the period when mis-selling practices were most prevalent. gather any relevant documents such as loan contracts, bank statements showing payments made under the agreement, and correspondence with lenders or dealerships regarding the finance arrangement.
If you believe that your motor finance agreement was mis-sold, you can complain directly to your lender for free. Major lenders operating in Aberdeen City include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). You do not need a
claims management company; the process of making a complaint is straightforward and can be done without additional costs.
If your lender does not address your concerns adequately, you have the option to escalate the matter to the
Financial Ombudsman Service (
FOS), which provides free and impartial dispute resolution for financial complaints. The FOS offers an independent review that can help resolve disputes with lenders.
Sources and References
- Office for National Statistics (ONS) Census 2021
- Financial Conduct Authority (FCA)
- Financial Ombudsman Service (FOS)
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.