Motor Finance Claims East Midlands - FCA Investigation

Home › Areas › Motor Finance Claims East Midlands - FCA Investigation

Motor Finance Claims East Midlands - FCA Investigation

Last updated: 27 February 2026

East Midlands - mlj.org.uk — Photo by Nicole Broetto on Pexels

East Midlands residents may be surprised to learn that approximately 461,160 drivers are potentially impacted by motor finance mis-selling practices (calculated using ONS Census 2021 population data and FCA estimates) within a region populated by 4,880,000 people (ONS Census 2021). This widespread issue has affected individuals who purchased personal contract purchase (PCP) or hire purchase (HP) finance agreements through local dealerships.

How motor finance mis-selling affected East Midlands

Dealerships in the East Midlands such as Inchape East Midlands, Pendragon East Midlands, Marshall Motor Group East Midlands, and Sytner East Midlands were involved in selling PCP and HP finance contracts. These dealerships often partnered with major lenders like 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) to facilitate these agreements. The industry practice of [[discretionary commission](https://mlj.org.uk/glossary/discretionary-commission-arrangement)](https://mlj.org.uk/glossary/discretionary-commission-arrangement) arrangements allowed lenders to provide additional financial incentives to dealerships for selling finance products. This arrangement may have influenced salespeople to prioritise high-commission deals over more suitable financing options for customers. many drivers in the East Midlands might have been sold motor finance agreements that were not in their best interest.

The FCA motor finance investigation

The Financial Conduct Authority (FCA) launched an investigation into motor finance mis-selling practices from 6 April 2007 to 1 November 2024. This inquiry uncovered that 12.1 million eligible agreements (FCA, March 2026) across the UK have been affected by these misleading sales practices (FCA estimate). The total value of these agreements amounts to £7.5 billion, with an average claim worth around £829 (FCA estimate). The investigation revealed that discretionary commission arrangements could lead to customers being sold finance products that were unsuitable for their financial situation or needs.

How East Midlands residents can check their finance agreements

To determine whether your motor finance agreement may have been mis-sold, East Midlands residents should review the dates of their finance contract and any supporting documentation. If you entered into a PCP or HP agreement with one of the major lenders mentioned above between 6 April 2007 and 1 November 2024, it is essential to gather all relevant documents, such as your loan agreement, sales invoice, and any correspondence with the lender. Residents should look for evidence that their finance deal was not suitable or transparent. Common red flags include high interest rates, aggressive upselling of add-on products, or a lack of clear information about alternative financing options.

How to complain directly to your lender for free

You can complain directly to your lender for free without the need for a claims management company. Major lenders operating in East Midlands include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). When lodging a complaint with your lender, ensure you have all necessary documentation to support your case. If the lender's response is unsatisfactory or if you require further assistance, the Financial Ombudsman Service provides an independent and free service for resolving disputes between consumers and financial firms.

Sources and references

FCA estimates of affected agreements: 12.1 million (FCA estimate)
Total value of affected agreements: £7.5 billion (FCA estimate)
Average claim amount: £829 (FCA estimate)
Population data for East Midlands: ONS Census 2021
Calculated affected drivers in East Midlands: calculated using ONS Census 2021 population data and FCA estimates
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 residents in East Midlands might have been affected by motor finance mis-selling?

Based on ONS Census 2021 population data and FCA estimates, an estimated 461,160 drivers in the East Midlands could be affected by motor finance mis-selling.

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

If you believe your motor finance agreement was mis-sold, you can complain directly to your lender for free and request a review of your case. You do not need a claims management company.

Are there any specific signs that my motor finance arrangement might have been mis-sold in East Midlands?

Signs of mis-selling include being misled about the total cost, being pressured into signing without time to consider, or being given unsuitable advice. If you experienced these issues, it's worth reviewing your agreement and considering whether to complain to your lender.

What is the average compensation amount for motor finance mis-selling claims in East Midlands?

The FCA estimates that the average compensation paid out per claim related to motor finance mis-selling is £829 (FCA estimate). However, this can vary based on individual circumstances.

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.