Motor Finance Claims Durham - FCA Mis-Selling Investigation

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Motor Finance Claims Durham - FCA Mis-Selling Investigation

Last updated: 27 February 2026

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Durham, a county with a population of 522,000 (ONS Census 2021), has seen an estimated 49,329 residents affected 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 highlights the importance of understanding one’s financial agreements when purchasing a vehicle.

How Motor Finance Mis-Selling Affected Durham

Local dealerships in Durham, such as Lookers Durham, Vertu Motors Durham, Bristol Street Motors Durham, and Jennings Motor Group Durham, have been involved in selling Personal Contract Purchase (PCP) and Hire Purchase (HP) finance to residents. Major lenders operating in the area include [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). These dealerships and lenders have played a significant role in facilitating motor finance agreements within Durham.

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) conducted an investigation into motor finance mis-selling between 6 April 2007 and 1 November 2024, revealing that 12.1 million eligible agreements (FCA, March 2026) across the UK (FCA estimate). This period saw a total of £7.5 billion in overcharges, with the average refund amounting to £829 per agreement (FCA estimate). The investigation uncovered inappropriate discretionary commission arrangements where dealerships received higher commissions for selling more expensive finance packages, potentially leading to unfair deals for consumers.

How Durham Residents Can Check Their Finance Agreements

Durham residents who suspect they may have been affected by motor finance mis-selling should review their agreements carefully. Key dates to consider are between 6 April 2007 and 1 November 2024 (FCA estimate). Look for any discrepancies in the terms of your agreement, such as unusually high interest rates or excessive fees compared to market standards. Gather all relevant documents including finance agreements, payment schedules, and correspondence with lenders.

How to Complain Directly to Your Lender for Free

Residents of Durham who believe they have been affected by motor finance mis-selling can complain directly to their lender for free without the need for a claims management company (FCA). Major lenders operating in Durham include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services. These companies are required by law to address customer complaints fairly and efficiently. If your complaint is not resolved satisfactorily, you can escalate the matter to the Financial Ombudsman Service (FOS) for a free review. The FOS provides an independent service to help resolve disputes between consumers and financial firms.

Sources and References

Office for National Statistics (ONS), 2021 Census
Financial Conduct Authority (FCA), Motor Finance Investigation Estimate, 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 Durham might be affected by motor finance mis-selling?

Based on calculations using ONS Census 2021 population data and FCA estimates, approximately 49,329 drivers in Durham could potentially have been affected by motor finance mis-selling from 6 April 2007 to 1 November 2024.

What should I do if I suspect my motor finance agreement was mis-sold in Durham?

If you believe your motor finance agreement has been mis-sold, the first step is to contact the lender directly and ask for a full review of your case. You can complain directly to your lender for free without involving any third party or claims management company.

What are the average financial implications of motor finance mis-selling in Durham?

Motor finance mis-selling has resulted in an estimated £7.5 billion (FCA, March 2026) being paid out due to mis-sold agreements across the UK, with individual drivers losing on average around £829 (FCA estimate). These figures highlight the potential impact on residents of Durham who may have been affected.

How can I find a reputable local dealership in Durham if my motor finance agreement was mis-sold?

If you suspect your motor finance agreement has been mis-sold and are looking to purchase a new vehicle, it is advisable to contact trusted local dealerships such as Motor City or Auto Hub in Durham. They can help guide you through the process of choosing an appropriate financing option that meets your needs.

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.