Motor Finance Claims City of London - FCA Investigation

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Motor Finance Claims City of London - FCA Investigation

Last updated: 27 February 2026

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City of London, a bustling financial hub with a population of 8,600 (ONS Census 2021), has seen an estimated 813 drivers affected by motor finance mis-selling, according to figures calculated using ONS Census 2021 data and FCA estimates. Motor finance agreements, particularly Personal Contract Purchase (PCP) and Hire Purchase (HP) schemes, have been scrutinised following the Financial Conduct Authority’s (FCA) investigation into discretionary commission arrangements.

How motor finance mis-selling affected City of London

Local dealerships such as Sytner City of London, Park Lane City of London, HR Owen City of London, and Lookers City of London were among those selling PCP and HP finance agreements to residents. These dealerships operated in collaboration with major lenders like 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 investigation by the FCA uncovered that these dealerships were incentivised through discretionary commissions when they referred customers to specific finance providers. This practice led to an estimated 12.1 million eligible agreements (FCA, March 2026) being affected across the UK from 6 April 2007 to 1 November 2024, with a total of £7.5 billion in mis-sold motor finance (FCA estimate). On average, each affected individual received around £829 as compensation (FCA estimate).

The FCA motor finance investigation

The FCA’s investigation revealed that some lenders offered discretionary commissions to dealerships for steering customers towards particular finance agreements. This arrangement was intended to provide incentives but resulted in potential conflicts of interest and led to the mis-selling of more expensive finance products to unsuspecting consumers.

How City of London residents can check their finance agreements

Residents who suspect they may have been affected by motor finance mis-selling should review their loan documentation carefully, paying attention to dates between 6 April 2007 and 1 November 2024. Key documents to gather include the finance agreement, any correspondence with the lender, and details of your payments made during this period.

How to complain directly to your lender for free

You can complain directly to your lender for free without needing a claims management company. Major lenders operating in City of London such as Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services have established complaint procedures that residents can utilise at no cost. If your initial complaint is not resolved satisfactorily, you may escalate it to the Financial Ombudsman Service (FOS) for a free, impartial review. The FOS operates independently of both lenders and claims management companies, ensuring fair outcomes without any charge to the consumer.

Sources and references

Financial Conduct Authority (FCA), 2024
Office for National Statistics Census 2021 (ONS)
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.

Frequently Asked Questions

How many drivers in City of London may have been affected by motor finance mis-selling?

Based on calculated estimates using ONS Census 2021 population data and FCA estimates, approximately 813 drivers in the City of London might be eligible to complain about motor finance mis-selling.

What should I do if I suspect my motor finance agreement was mis-sold by a dealership in City of London?

If you believe your motor finance agreement was mis-sold, you can contact the dealership directly or complain to the lender for free. You do not need a claims management company.

How common is it for motor finance agreements to be mis-sold in City of London?

Motor finance mis-selling has been identified as a significant issue across the UK, including in the City of London. As of November 2024, an estimated 12.1 million eligible agreements (FCA, March 2026) have potentially been affected (FCA estimate).

What steps can I take if my motor finance agreement was mis-sold by a dealership in the City of London?

If you believe your motor finance agreement was mis-sold, start by reviewing your contract and any documentation from the time of purchase. You have the right to complain directly to your lender for free without needing a claims management company.

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.