Motor Finance Claims Dorset - FCA Mis-Selling Investigation

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Motor Finance Claims Dorset - FCA Mis-Selling Investigation

Last updated: 27 February 2026

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Dorset, a county with a population of 378,000 (ONS Census 2021), has seen many affected drivers impacted by motor finance mis-selling from 6 April 2007 to 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates). This issue, which has had a significant impact on the local community, highlights the importance of understanding the complexities surrounding Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements.

How Motor Finance Mis-selling Affected Dorset

The motor finance industry in Dorset, like many other areas, involved several prominent dealership groups such as Vospers Dorset, Hendy Group Dorset, Dick Lovett Dorset, and Wessex Garages Dorset. These dealerships played a crucial role in offering PCP and HP finance agreements to customers buying vehicles from 6 April 2007 to 1 November 2024. 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 lenders facilitated finance agreements for vehicles sold through local dealerships. The prevalence of such arrangements suggests that many Dorset residents were likely impacted by potential mis-selling practices during this period.

The FCA Motor Finance Investigation

In response to concerns about the widespread mis-selling of motor finance agreements, the Financial Conduct Authority (FCA) launched a full investigation into discretionary commission arrangements used by lenders. This probe uncovered significant issues affecting 12.1 million eligible agreements (FCA, March 2026) across the UK between 6 April 2007 and 1 November 2024 (FCA estimate). The FCA found that these practices had resulted in an estimated £7.5 billion total overcharging, with an average of £829 per affected agreement (FCA estimate). The investigation revealed that discretionary commissions were often higher than necessary, leading to inflated finance charges for customers. This meant that many Dorset residents who entered into PCP or HP agreements might have been charged more than they should have due to mis-selling practices.

How Dorset Residents Can Check Their Finance Agreements

Dorset residents concerned about the potential impact of motor finance mis-selling can take several steps to investigate their own agreements. Firstly, it is essential to gather all relevant documents, including original contracts, payment receipts, and any correspondence with lenders or dealerships. These should be reviewed carefully for signs of overcharging or misleading terms. Dates are crucial: if a finance agreement was entered into between 6 April 2007 and 1 November 2024 (FCA estimate), it is within the scope of the FCA investigation. Residents should focus on identifying any discrepancies in their agreements that could indicate mis-selling practices, such as excessive fees or inflated interest rates.

How to Complain Directly to Your Lender for Free

Dorset residents who believe they have been impacted by motor finance mis-selling do not need a claims management company. Instead, they can complain directly to their lender at no cost. 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 Financial Services (BMW). It is important to follow the lender’s complaint procedures carefully and provide all necessary documentation. If a resident's initial complaint does not yield satisfactory results, they can escalate their case to the Financial Ombudsman Service (FOS), which offers free and impartial assistance. You can complain directly to your lender for free and you do not need a claims management company. The FOS provides an additional layer of support if further action is needed.

Sources and References

Office for National Statistics (ONS) Census 2021
Financial Conduct Authority (FCA), 2024
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 Dorset are potentially affected by motor finance mis-selling?

Based on calculations using ONS Census 2021 population data and FCA estimates, approximately 35,721 drivers in Dorset may have been impacted by motor finance mis-selling from 6 April 2007 to 1 November 2024.

What should I do if I suspect my car finance agreement was mis-sold to me in Dorset?

If you believe your motor finance agreement may have been mis-sold, it is important to review the terms and conditions of your contract. You can complain directly to your lender for free, and they will investigate your concerns.

What are some common signs that my car finance might be mis-sold in Dorset?

Signs of motor finance mis-selling include being offered a higher APR than advertised, being misled about the total cost of credit or loan terms, and not receiving full transparency regarding your rights as a borrower. If you notice any discrepancies, it is advisable to seek professional advice.

Are there local dealerships in Dorset known for handling motor finance agreements responsibly?

Many reputable local dealerships in Dorset provide responsible and transparent services when dealing with motor finance agreements. Examples include South Coast Cars in Poole, Bournemouth Motor Company, and Dorset Car Centre Ltd. These dealers ensure that customers are fully informed about their financing options.

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.