Motor Finance Claims East Lothian - FCA Investigation

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Motor Finance Claims East Lothian - FCA Investigation

Last updated: 27 February 2026

East Lothian - mlj.org.uk — Photo by Uuganbayar Otgonbayar on Pexels

East Lothian, a picturesque Scottish council area with a population of 108,800 (ONS Census 2021), has been affected by motor finance mis-selling. An estimated 10,282 drivers in East Lothian may have entered into unfair or misleading personal contract purchase (PCP) and hire purchase (HP) agreements during the period from 6 April 2007 to 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates).

How Motor Finance Mis-selling Affected East Lothian

Motor finance mis-selling occurred in East Lothian through various local dealerships. Dealerships such as Arnold Clark East Lothian, Peter Vardy East Lothian, Eastern Western Motor Group East Lothian, and Macklin Motors East Lothian were involved in selling PCP and HP agreements to customers during this period. These arrangements may have been influenced by discretionary commission schemes that incentivised dealers to recommend certain lenders over others. Major lenders operating in East Lothian included [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 lenders were involved in the discretionary commission arrangements that have been at the heart of recent investigations by the Financial Conduct Authority (FCA).

The FCA Motor Finance Investigation

The FCA launched an investigation into motor finance mis-selling, focusing on discretionary commission arrangements. These arrangements allowed dealers to earn additional commissions based on which lender a customer chose for their vehicle financing. As a result, 12.1 million eligible agreements (FCA, March 2026) across the UK (FCA estimate), with a total value of £7.5 billion (FCA estimate). On average, each agreement involved an overcharge of £829 (FCA estimate). The FCA's investigation uncovered that many dealerships may have recommended lenders based on potential commission earnings rather than providing impartial advice to customers about the best financing options available.

How East Lothian Residents Can Check Their Finance Agreements

East Lothian residents who suspect they were affected by motor finance mis-selling should review their agreements carefully. Key aspects to check include:

Dates of Agreement: Any agreement entered into between 6 April 2007 and 1 November 2024.
Lender Involved: Review the lender's name in your agreement. If it was one of the major lenders mentioned earlier, you may have been affected by mis-selling practices.
Dealership Name: Confirm whether the dealership that sold you the vehicle also recommended the finance provider.

Residents should gather any documentation related to their financing agreements, including application forms, contracts, and promotional materials from the dealerships. These documents can help provide a clear understanding of how your agreement was structured.

How to Complain Directly to Your Lender for Free

If East Lothian residents believe they have been affected by motor finance mis-selling, you can complain directly to your lender for free without needing to involve any claims management company. 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 are required to address these complaints. When contacting your lender, provide detailed information about the dates of your agreement, the dealership involved, and any evidence you have gathered. Lenders should respond within a reasonable timeframe and offer fair compensation if your complaint is valid. If your lender does not resolve your issue satisfactorily, you can escalate your complaint to the Financial Ombudsman Service (FOS), which provides an independent free service for resolving disputes between financial services providers and their customers.

Sources and References

FCA
Financial Ombudsman Service
Office of National Statistics 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.

Frequently Asked Questions

How many drivers in East Lothian might have been affected by motor finance mis-selling?

Based on population data from the ONS Census 2021 and estimates provided by the FCA, approximately 10,282 drivers in East Lothian could be among those affected by motor finance mis-selling.

What should I do if I suspect my motor finance agreement was mis-sold to me in East Lothian?

If you believe your motor finance agreement may have been mis-sold, the first step is to review your contract thoroughly. You can also complain directly to your lender for free and request a full investigation.

What percentage of motor finance agreements in East Lothian might be affected by mis-selling issues?

While exact percentages are not available, the FCA has estimated that 12.1 million eligible agreements (FCA, March 2026) across the UK were potentially mis-sold as of April 6, 2007 to November 1, 2024. Given East Lothian's population and local vehicle ownership statistics, it is likely that a significant number of residents in East Lothian are affected.

Are there specific dealerships or lenders in East Lothian known for mis-selling motor finance agreements?

Motor finance mis-selling can occur with any lender or dealership. While some national chains have faced scrutiny, it is important to address concerns directly with the lender involved. Local dealers such as Arnold Clark and Evans Halshaw operate in East Lothian and should be approached if issues are suspected.

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.