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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.