Motor Finance Claims Cheshire - FCA Investigation

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Motor Finance Claims Cheshire - FCA Investigation

Last updated: 27 February 2026

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Cheshire, a county with a population of 766,000 (ONS Census 2021), has seen an estimated 72,387 drivers potentially affected by motor finance mis-selling between 6 April 2007 and 1 November 2024, based on calculations using ONS Census 2021 population data and FCA estimates. This issue has raised concerns among residents about the fairness of their vehicle financing arrangements.

How Motor Finance Mis-Selling Affected Cheshire

Motor finance mis-selling in Cheshire involved several local dealerships that sold Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements to customers during the period specified by the Financial Conduct Authority (FCA). Dealership groups such as Arnold Clark Cheshire, JCT600 Cheshire, Lookers Cheshire, and Peter Vardy Cheshire were likely involved in these sales practices. Major lenders operating in the area included 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 dealerships and lenders played a crucial role in facilitating the sale of potentially unfair finance agreements to local residents.

The FCA Motor Finance Investigation

The FCA's motor finance investigation uncovered significant issues with discretionary commission arrangements used by lenders. Between 6 April 2007 and 1 November 2024, it is estimated that 12.1 million eligible agreements (FCA, March 2026), resulting in a total mis-selling impact of £7.5 billion (FCA estimate). On average, affected customers could be entitled to around £829 (FCA estimate) as compensation for unfair practices. The investigation highlighted how these arrangements might have led dealerships and lenders to push customers into agreements that were not in their best interest.

How Cheshire Residents Can Check Their Finance Agreements

Cheshire residents who suspect they may have been affected by motor finance mis-selling should review their finance agreements carefully. Key dates to focus on are from 6 April 2007 to 1 November 2024, as this period marks the timeframe of the FCA investigation. Important documents to gather include your original finance agreement, any related correspondence with lenders or dealerships, and payment records showing how much you paid in excess due to mis-selling practices.

How to Complain Directly to Your Lender for Free

Residents who believe they have been affected by motor finance mis-selling can complain directly to their lender at no cost. Major lenders operating in Cheshire include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). You can contact these lenders directly via email or phone to initiate a complaint process. you do not need a claims management company to handle your case. The Financial Ombudsman Service provides an additional free escalation route if you are unsatisfied with the outcome of your direct complaint to your lender.

Sources and References

FCA, 2024
ONS Census 2021
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.

Frequently Asked Questions

How many drivers in Cheshire are estimated to have been affected by motor finance mis-selling?

Based on ONS Census 2021 population data and FCA estimates, approximately 72,387 drivers in Cheshire may be affected by motor finance mis-selling. It's important for these drivers to understand their rights and options.

What steps can residents of Cheshire take if they suspect they were sold a car on unfair credit terms?

Residents of Cheshire who believe they have been subject to unfair credit sales in the automotive industry should first consider complaining directly to their lender for free. This is often the quickest and most straightforward way to resolve any issues.

What are common signs of motor finance mis-selling in Cheshire?

Common signs of motor finance mis-selling include being pressured into a high-interest loan, being misled about your credit score or affordability, and being unaware that other financing options were available. If you suspect this has happened to you, it's important to seek professional advice.

Is there any financial compensation for victims of motor finance mis-selling in Cheshire?

Victims of motor finance mis-selling in Cheshire may be entitled to financial compensation if they can prove that the lender acted unlawfully. This could include refunds, interest on overpaid amounts, and other forms of redress. However, it is important not to use a claims management company as you do not need one.

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.