Motor Finance Claims Croydon - FCA Mis-Selling Investigation

Home › Areas › Motor Finance Claims Croydon - FCA Mis-Selling Investigation

Motor Finance Claims Croydon - FCA Mis-Selling Investigation

Last updated: 27 February 2026

Croydon - mlj.org.uk — Photo by kevin grieve on Pexels

Croydon, a bustling London borough with a population of 390,700 (ONS Census 2021), has been significantly impacted by motor finance mis-selling practices. An estimated 36,921 drivers in Croydon are affected by these issues based on calculations using ONS Census 2021 data and FCA estimates.

How Motor Finance Mis-Selling Affected Croydon

Motor finance mis-selling has been a pervasive issue affecting many residents of Croydon. Local dealerships such as Sytner Croydon, Park Lane Croydon, HR Owen Croydon, and Lookers Croydon have sold Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements to unsuspecting customers. These dealerships, along with others in the area, may have been involved in selling motor finance agreements that were not suitable for their clients. Major lenders operating in Croydon 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 provided the financing to local dealerships, which then sold these agreements to car buyers. The mis-selling practices involved commission arrangements that incentivised lenders and dealerships to push unsuitable finance products onto consumers.

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) has launched an investigation into motor finance mis-selling, focusing on the period from 6 April 2007 to 1 November 2024. This probe is centred around discretionary commission arrangements that encouraged lenders and dealerships to sell unsuitable agreements to consumers. The FCA estimates that 12.1 million eligible agreements (FCA, March 2026) were affected, resulting in a total mis-selling of £7.5 billion (FCA estimate) (FCA, March 2026).

How Croydon Residents Can Check Their Finance Agreements

Croydon residents who suspect they may have been victims of motor finance mis-selling should review their car finance agreements carefully. Key dates to consider are from 6 April 2007 to 1 November 2024, as this period is the focus of the FCA investigation. Documents such as loan contracts, credit agreements, and any correspondence with lenders or dealerships can provide valuable information. Residents should look for signs that their finance agreement was unsuitable, including high interest rates, excessive fees, and terms that were not clearly explained during the sales process. If a resident finds discrepancies or issues in their agreement, they should gather all relevant documents to support their case when contacting their lender.

How to Complain Directly to Your Lender for Free

Residents of Croydon can complain directly to their lenders without needing assistance from claims management companies. Major lenders such as Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW) have customer service teams dedicated to handling complaints. You can complain directly to your lender for free by contacting them through their official channels. If your complaint is not resolved satisfactorily, you may escalate it to the Financial Ombudsman Service (FOS), which offers a free and independent dispute resolution service.

Sources and References

FCA estimates on affected agreements: 12.1 million eligible agreements (FCA, March 2026)
Total mis-selling figure: £7.5 billion (FCA estimate)
FCA-estimated scheme average per eligible agreement: £829 (FCA estimate)
Population of Croydon: 390,700 (ONS Census 2021)
Affected drivers in Croydon: 36,921 (calculated using ONS Census 2021 population data and FCA estimates)

You can complain to your lender directly for free. You do not need a claims management company to check whether you are owed compensation.

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 Croydon might have been affected by motor finance mis-selling?

Based on calculations using ONS Census 2021 population data and FCA estimates, approximately 36,921 drivers in Croydon may have been impacted by motor finance mis-selling between 6 April 2007 and 1 November 2024.

What should I do if I suspect my motor finance agreement was misrepresented when I bought a car from a dealership in Croydon?

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

What is the average amount of money estimated to be lost due to motor finance mis-selling in Croydon?

According to FCA estimates, the average loss per affected driver from motor finance mis-selling could be around £829 (FCA estimate).

How many motor finance agreements have been estimated to be potentially mis-sold across the UK, including Croydon?

The Financial Conduct Authority estimates that 12.1 million eligible agreements (FCA, March 2026) could have been subject to mis-selling practices from April 2007 to November 2024. This includes residents in Croydon.

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.