Motor Finance Claims Gateshead - FCA Investigation

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Motor Finance Claims Gateshead - FCA Investigation

Last updated: 27 February 2026

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Gateshead, with a population of 202,500 (ONS Census 2021), has been affected by motor finance mis-selling, impacting an estimated 19,136 drivers (calculated using ONS Census 2021 population data and FCA estimates). The Financial Conduct Authority (FCA) investigation into the practices of car dealerships in Gateshead has revealed widespread issues with Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements.

How Motor Finance Mis-selling Affected Gateshead

Local dealerships such as Lookers Gateshead, Vertu Motors Gateshead, Bristol Street Motors Gateshead, and Jennings Motor Group Gateshead were among those that sold PCP/HP finance to customers. These arrangements often involved 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). The investigation found that these dealerships may have engaged in practices that were unfair or misleading to consumers.

The FCA Motor Finance Investigation

The FCA's motor finance investigation uncovered significant issues with discretionary commission arrangements used by lenders and dealerships. These arrangements allowed lenders to offer financial incentives to dealers for selling specific products, which could lead to customers being sold unsuitable agreements. According to the FCA, 12.1 million eligible agreements (FCA, March 2026) during the period from 6 April 2007 to 1 November 2024 (FCA estimate), with a total value of £7.5 billion (FCA estimate). The average loss per customer was estimated at £829 (FCA estimate).

How Gateshead Residents Can Check Their Finance Agreements

Gateshead residents who suspect they may have been affected by mis-selling can check their finance agreements by reviewing the documentation provided when they took out the loan. Key dates to look for include any transactions between 6 April 2007 and 1 November 2024, as these fall within the FCA's investigation period. Gather all relevant documents such as loan contracts, payment records, and communication with lenders.

How to Complain Directly to Your Lender for Free

Residents of Gateshead who believe they have been affected by motor finance mis-selling can complain directly to their lender for free. Major lenders operating in the area 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; simply contact your lender using the customer service number or website to initiate your complaint. If you are unsatisfied with the response from your lender, you can escalate your complaint to the Financial Ombudsman Service (FOS) for free.

Sources and References

FCA estimates on affected agreements: 12.1 million (FCA estimate), £7.5 billion total (FCA estimate), £829 average per eligible agreement
Population of Gateshead: 202,500 (ONS Census 2021)
Estimated affected drivers in Gateshead: calculated using ONS Census 2021 population data and FCA estimates
Local dealerships in Gateshead: Lookers Gateshead, Vertu Motors Gateshead, Bristol Street Motors Gateshead, Jennings Motor Group Gateshead
Major lenders operating in Gateshead: Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, Alphera Financial Services (BMW)
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 Gateshead are potentially affected by motor finance mis-selling?

Based on calculations using ONS Census 2021 population data and FCA estimates, an estimated 19,136 drivers in Gateshead could be impacted by motor finance mis-selling.

What should I do if I suspect my car finance agreement was mis-sold to me in Gateshead?

If you believe your car finance agreement was mis-sold, the first step is to review your contract and gather any evidence. You can complain directly to your lender for free without involving a claims management company.

How common is motor finance mis-selling in Gateshead?

Motor finance mis-selling has been identified as a significant issue across the UK, with an estimated 12.1 million eligible agreements (FCA, March 2026) being affected since April 6, 2007 (FCA estimate). While specific data for Gateshead is not available, national trends suggest it could be prevalent in your area.

Are there any local dealerships in Gateshead that have been involved in motor finance mis-selling?

Motor finance mis-selling has affected various dealers across the UK. While specific instances involving Gateshead dealers such as Northgate and J&A Burrows cannot be confirmed without detailed investigation, it is advisable to review your financing agreement carefully if you purchased a vehicle from any dealership in Gateshead.

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.