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How many drivers in Dundee City could have been affected by motor finance mis-selling? According to our calculations, an estimated 14,005 residents might be impacted, based on the population of 148,200 (ONS Census 2021) and FCA estimates. This issue has significant implications for drivers who entered into
Personal Contract Purchase (PCP) or
Hire Purchase (HP) agreements between 6 April 2007 and 1 November 2024.
How Motor Finance Mis-selling Affected Dundee City
Motor finance mis-selling is a complex issue that has affected numerous residents in Dundee City. Local dealerships such as Arnold Clark Dundee City, Peter Vardy Dundee City, Eastern Western Motor Group Dundee City, and Macklin Motors Dundee City played significant roles in the sale of PCP/HP agreements during this period. These dealerships facilitated deals with major lenders operating in the area, including
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 FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance sales practices to address widespread concerns about mis-selling. A key focus of the inquiry was the use of
discretionary commission arrangements by lenders, which were found to incentivize dealerships to sell more expensive and complex finance products rather than simple cash purchases. The FCA's findings revealed that 12.1 million eligible agreements (FCA, March 2026) across the UK may have been affected, resulting in an estimated £7.5 billion total overcharge (FCA estimate), with an average additional cost of £829 per agreement (FCA estimate).
How Dundee City Residents Can Check Their Finance Agreements
To determine if you were a victim of motor finance mis-selling, residents should review their car purchase documents from the period 6 April 2007 to 1 November 2024. Key points to look for include:
- Whether your agreement was a PCP or HP contract
- The terms and conditions of the financing arrangement
- Any additional fees or charges beyond the basic loan amount
Gathering all relevant documents, including contracts, finance agreements, and correspondence with lenders, will help you build a clear picture of any potential mis-selling issues.
If you believe your motor finance agreement was mis-sold, you can complain directly to the lender free of charge. The major lenders operating in Dundee City include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). You do not need a
claims management company; you can file your complaint directly with the lender using their official complaint process.
If your lender does not resolve your issue to your satisfaction, you can escalate it to the
Financial Ombudsman Service (
FOS) as an additional free-of-charge route for resolution. The FOS is an independent body that resolves disputes between consumers and financial services providers impartially.
Sources and References
- Financial Conduct Authority (FCA), 2024
- Office for National Statistics (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.