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How many drivers in Blackburn could be affected by motor finance mis-selling? With many affected drivers (calculated using ONS Census 2021 population data and FCA estimates) out of a total population of 122,500 (ONS Census 2021), it’s crucial for Blackburn residents to understand the implications of this issue. The Financial Conduct Authority (FCA) has been investigating widespread mis-selling practices in motor finance agreements from 6 April 2007 to 1 November 2024.
How Motor Finance Mis-Selling Affected Blackburn
Motor finance mis-selling occurred at local dealerships in Blackburn where
Personal Contract Purchase (PCP) and
Hire Purchase (HP) agreements were often pushed on unsuspecting customers. Prominent dealership groups such as Arnold Clark Blackburn, JCT600 Blackburn, Lookers Blackburn, Peter Vardy Blackburn, and others played a significant role in selling these finance products.
Major lenders operating in the area include
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). These institutions were involved in providing financing for vehicles through various dealerships across Blackburn.
The FCA Motor Finance Investigation
The FCA’s investigation uncovered that
discretionary commission arrangements, where lenders paid additional fees to dealers based on the number of agreements sold, led to significant mis-selling. This practice affected 12.1 million eligible agreements (FCA, March 2026) nationwide, with a total value of £7.5 billion (FCA estimate). On average, each affected agreement was worth around £829 (FCA estimate), indicating substantial overcharging for many Blackburn residents.
How Blackburn Residents Can Check Their Finance Agreements
To determine if you were mis-sold motor finance in Blackburn, start by reviewing your finance agreements from the period of 6 April 2007 to 1 November 2024. Look for any unusual fees or commissions that seem disproportionate to the value of the agreement. Gather all relevant documents including sales contracts, financing paperwork, and correspondence with lenders.
If you suspect mis-selling in your finance agreement, you can complain directly to your lender for free without needing a
claims management company. Major lenders like Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW) all have dedicated customer service teams ready to address complaints.
You do not need a claims management company; you can handle the process independently. If your lender’s response is unsatisfactory or if they fail to resolve your issue, consider escalating your complaint to the
Financial Ombudsman Service (
FOS), which provides free and impartial dispute resolution for financial services issues.
Sources and References
- FCA estimates: 12.1 million eligible agreements (FCA, March 2026), £7.5 billion total (FCA estimate), £829 average per eligible agreement
- Population data: ONS Census 2021
- Financial Conduct Authority (FCA, 2024)
- 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.