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Barking and Dagenham, a London borough with a population of 218,900 (ONS Census 2021), has been significantly impacted by motor finance mis-selling. An estimated 20,686 drivers in Barking and Dagenham have potentially been affected by this issue, based on calculations using ONS Census 2021 population data and FCA estimates.
How Motor Finance Mis-Selling Affected Barking and Dagenham
Local dealerships such as Sytner Barking and Dagenham, Park Lane Barking and Dagenham, HR Owen Barking and Dagenham, and Lookers Barking and Dagenham sold
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements to residents in the area. These dealerships operated with major lenders including
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 issue arose from
discretionary commission arrangements that incentivised sales staff at these dealerships to sell more expensive finance agreements. This practice led to customers being misled or pressured into signing agreements that were not in their best financial interest.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into the motor finance industry, uncovering widespread mis-selling practices that affected 12.1 million eligible agreements (FCA, March 2026) across the UK between 6 April 2007 and 1 November 2024 (FCA estimate). These agreements resulted in over £7.5 billion in total compensation for affected customers, with an average of £829 per claimant (FCA estimate).
The investigation found that lenders paid discretionary commissions to dealerships based on the volume and value of finance agreements sold. This created a conflict of interest where sales staff prioritised their earnings over customer needs, leading to higher costs and less transparent deals for buyers.
How Barking and Dagenham Residents Can Check Their Finance Agreements
Residents in Barking and Dagenham can check if they are covered by the FCA redress scheme. by reviewing their finance agreements carefully. Key aspects to look for include:
- The dates of the agreement: From 6 April 2007 to 1 November 2024
- Evidence of discretionary commissions or misleading sales tactics
- Any terms that seem overly complex or unfair
Gather any relevant documents such as loan contracts, payment slips, and correspondence with lenders. If you find discrepancies or suspect mis-selling, consider initiating a complaint directly with your lender.
You can complain directly to your lender for free without the need for a
claims management company. Major lenders operating in Barking and Dagenham include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services.
When making a complaint, provide detailed evidence of any mis-selling or unfair practices you experienced. Lenders are required to respond to your concerns in line with FCA regulations. If you remain unsatisfied after the initial response, you can escalate your complaint to the
Financial Ombudsman Service (
FOS) for free and impartial mediation.
Sources and References
- 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.