Motor Finance Claims Greater London - FCA Investigation

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Motor Finance Claims Greater London - FCA Investigation

Last updated: 27 February 2026

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Greater London, home to 8,799,800 residents (ONS Census 2021), has been significantly affected by motor finance mis-selling. An estimated 831,581 drivers in Greater London may have been impacted by this issue (calculated using ONS Census 2021 population data and FCA estimates). This article aims to provide clarity on the nature of these financial arrangements and how residents can address any concerns they might have.

How Motor Finance Mis-selling Affected Greater London

Motor finance mis-selling has affected numerous drivers in Greater London through various dealership groups such as Sytner Greater London, Park Lane Greater London, HR Owen Greater London, and Lookers Greater London. These dealerships sold Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements to customers, often with the involvement of major lenders including [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). The mis-selling involved practices where dealerships received undisclosed commissions on finance deals, leading many consumers to overpay for their vehicles.

The FCA Motor Finance Investigation

In response to the widespread issue of motor finance mis-selling, the Financial Conduct Authority (FCA) launched a full investigation. This probe uncovered that 12.1 million eligible agreements (FCA, March 2026) from 6 April 2007 to 1 November 2024 (FCA estimate). The total amount involved in these agreements is £7.5 billion (FCA estimate), with an average of £829 overpaid per agreement (FCA estimate). This investigation shed light on the discretionary commission arrangements that many dealerships had with lenders, which led to customers paying more for their car finance than they should have.

How Greater London Residents Can Check Their Finance Agreements

Greater London residents who suspect they may have been affected by motor finance mis-selling can take several steps to verify this. First, review the dates of your agreement: if it falls between 6 April 2007 and 1 November 2024, you should investigate further. Look for any documentation related to your vehicle purchase or financing, such as loan contracts, credit agreements, and correspondence with lenders. These documents may provide evidence of undisclosed commissions and inflated costs.

How to Complain Directly to Your Lender for Free

Residents who believe they have been affected by motor finance mis-selling can complain directly to their lender without the need for a claims management company. Major lenders such as Black Horse, MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services all offer free complaint resolution processes. You do not need a claims management company to handle your case; you can contact your lender directly using their customer service channels. If your initial complaint is unresolved or unsatisfactory, you can escalate the matter to the Financial Ombudsman Service (FOS) for further review and mediation. The FOS offers an independent and impartial service that can help resolve disputes between consumers and financial services providers.

Sources and References

Office for National Statistics (ONS) Census 2021
Financial Conduct Authority (FCA), 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 residents in Greater London are estimated to have been affected by motor finance mis-selling?

Based on calculated data using ONS Census 2021 population figures and FCA estimates, approximately 831,581 drivers in Greater London may be affected by motor finance mis-selling (calculated using ONS Census 2021 population data and FCA estimates).

What is the average amount of money lost per person due to motor finance mis-selling in Greater London?

The average loss per individual affected by motor finance mis-selling has been estimated at £829 (FCA estimate). This figure highlights the financial impact on residents who may have entered into agreements under misleading circumstances.

How can I address a potential issue with my motor finance agreement if I live in Greater London?

If you suspect that your motor finance agreement was mis-sold to you, you should first complain directly to the lender for free. This is often the most straightforward way to resolve any issues without involving additional third parties.

What proportion of motor finance agreements in Greater London might have been affected by mis-selling practices?

According to FCA estimates, 12.1 million eligible agreements (FCA, March 2026) potentially mis-sold between 2007 and 2024. Given the high population density of Greater London, a significant portion of these may affect local drivers. It is important for residents to be aware of their rights.

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.