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Dumfries and Galloway, a picturesque Scottish council area with a population of 148,700 (ONS Census 2021), has been significantly impacted by motor finance mis-selling. According to calculations based on ONS Census data and FCA estimates, an estimated 14,052 drivers in the region may have been affected by this issue.
How Motor Finance Mis-Selling Affected Dumfries and Galloway
Local dealerships such as Arnold Clark Dumfries and Galloway, Peter Vardy Dumfries and Galloway, Eastern Western Motor Group Dumfries and Galloway, and Macklin Motors Dumfries and Galloway were among those selling PCP (
Personal Contract Purchase) and HP (
Hire Purchase) finance agreements. These dealerships often partnered with major lenders including
[Black Horse](https://mlj.org.uk/lenders/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 sales practices at these dealerships may have included
[discretionary commission](https://mlj.org.uk/glossary/discretionary-commission-arrangement) arrangements that incentivised the sale of more expensive finance agreements to customers. This could have led to consumers being sold inappropriate or overly complex products, resulting in higher costs and financial hardship.
The FCA Motor Finance Investigation
In response to growing concerns about motor finance mis-selling, the Financial Conduct Authority (FCA) launched a wide-ranging investigation into the industry practices. From 6 April 2007 to 1 November 2024, an estimated 12.1 million eligible agreements (FCA, March 2026) across the UK were affected by these discretionary commission arrangements (FCA estimate). The total value of affected finance agreements was approximately £7.5 billion (FCA estimate), with an average loss per agreement estimated at around £829 (FCA estimate).
The FCA's investigation uncovered that many lenders and dealerships profited from selling complex financial products to consumers without fully disclosing the risks or costs involved. This led to widespread mis-selling, leaving thousands of car owners across Dumfries and Galloway in a difficult financial situation.
How Dumfries and Galloway Residents Can Check Their Finance Agreements
To determine whether you have been affected by motor finance mis-selling, residents should review their finance agreements carefully. Focus on the dates between 6 April 2007 and 1 November 2024 to see if your agreement falls within this period. Gather any documentation related to your car purchase and financing, including contracts, payment schedules, and correspondence with lenders.
If you suspect that your finance agreement was mis-sold, it is important to document the specifics of the sales process, such as how the product was presented to you, the terms agreed upon, and any additional costs or fees incurred. This information will be crucial when making a formal complaint to your lender.
Residents can complain directly to their lender for free without needing to use a
claims management company. Major lenders operating in Dumfries and Galloway include Black Horse, MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW).
When making a complaint, ensure you provide clear details about the issues you encountered during your finance agreement process. Lenders are required to address these complaints fairly and thoroughly. If you feel that your lender has not resolved the issue satisfactorily, you can escalate your complaint to the
Financial Ombudsman Service (
FOS) for free.
Sources and References
- FCA estimates on agreements affected: 12.1 million (FCA estimate)
- Total value of affected finance agreements: £7.5 billion (FCA estimate)
- FCA-estimated scheme average per eligible agreement: £829 (FCA estimate)
- Population of Dumfries and Galloway: 148,700 (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.