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Motor Finance Claims City of Edinburgh — FCA Investigation

Last updated: 27 February 2026

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The estimated 49,858 drivers in the City of Edinburgh who may have been affected by motor finance mis-selling is a significant number given the area's population of 527,600 (ONS Census 2021). This issue has impacted many residents who purchased vehicles through personal contract purchase (PCP) or hire purchase (HP) agreements during the period from 6 April 2007 to 1 November 2024. Motor finance mis-selling can be a complex and confusing process, but understanding the details of how it occurred in City of Edinburgh is crucial for affected drivers. ## How Motor Finance Mis-Selling Affected City of Edinburgh In the City of Edinburgh, several local dealerships were involved in selling PCP and HP agreements to residents. Dealership groups like Arnold Clark City of Edinburgh, Peter Vardy City of Edinburgh, Eastern Western Motor Group City of Edinburgh, and Macklin Motors City of Edinburgh have been active in the area. These dealerships partnered with major lenders such as 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) to offer finance packages to customers. The mis-selling issue arose due to [discretionary commission](https://mlj.org.uk/glossary/discretionary-commission-arrangement) arrangements between these lenders and dealerships. Dealers were incentivised through commissions that could lead them to recommend unsuitable or overly expensive finance products to customers. This practice affected a significant number of agreements across the UK, with an estimated 12.1 million eligible agreements (FCA, March 2026) impacted (FCA estimate) resulting in £7.5 billion total mis-sold (FCA estimate), with an average of £829 per customer (FCA estimate). ## The FCA Motor Finance Investigation The Financial Conduct Authority (FCA) has been investigating the motor finance industry to address these issues and ensure that customers are treated fairly. The investigation uncovered that some dealerships may have pushed customers towards financing agreements that were not in their best interests, leading to financial strain for many residents of City of Edinburgh. ## How City of Edinburgh Residents Can Check Their Finance Agreements To determine if you might be affected by motor finance mis-selling, it is essential to review your finance agreement carefully. Look for any signs that the deal was pushed on you rather than tailored to your needs and budget. Focus on agreements made between 6 April 2007 and 1 November 2024, which is the period covered by the FCA investigation. You should gather all relevant documents related to your finance agreement, including the contract hire agreement or HP/PCP documentation. Review these for any discrepancies or signs of mis-selling such as excessive fees, high interest rates, or unsuitable terms. If you notice anything unusual or suspect that your deal was not properly explained, it is advisable to contact your lender directly. ## How to Complain Directly to Your Lender for Free If you believe you have been a victim of motor finance mis-selling, you can complain directly to your lender for free without the need for a claims management company. Major lenders in City of Edinburgh include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). Contacting these lenders directly allows you to explain your situation and seek redress for any unfair practices. You do not need a claims management company; the process of complaining can be handled independently. If your lender does not resolve your complaint satisfactorily, you may escalate it to the Financial Ombudsman Service (FOS), which is also free to use. ## Sources and References - FCA estimates on motor finance mis-selling: 12.1 million eligible agreements (FCA, March 2026) (£7.5 billion total, £829 average per eligible agreement) (FCA, 2024) - Population of City of Edinburgh: 527,600 (ONS Census 2021) - Local dealership groups in City of Edinburgh: Arnold Clark City of Edinburgh, Peter Vardy City of Edinburgh, Eastern Western Motor Group City of Edinburgh, Macklin Motors City of Edinburgh - Major lenders operating in the area: Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, Alphera Financial Services (BMW)

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 City of Edinburgh are potentially affected by motor finance mis-selling?

Based on calculations using ONS Census 2021 population data and FCA estimates, approximately 49,858 drivers in the City of Edinburgh may be affected by motor finance mis-selling.

What should I do if I believe my car finance agreement was sold to me incorrectly in City of Edinburgh?

If you suspect that your motor finance agreement was mis-sold, you can complain directly to your lender for free. It is important to gather all relevant documentation and contact the lender's customer service department.

What are some signs of motor finance mis-selling in City of Edinburgh?

Signs of motor finance mis-selling include being pushed towards a high-cost agreement when other options were available, not receiving full disclosure about fees or repayment terms, and being encouraged to take out unnecessary add-ons. If you experienced any of these issues, it may be worth investigating further.

What are the typical costs involved with mis-sold motor finance agreements in City of Edinburgh?

Motor finance mis-selling can result in significant overpayment. On average, drivers who have been affected by mis-sold agreements could save around £829 (FCA estimate). It's crucial to understand your rights and the steps you can take to rectify any unfair financial arrangements.

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.