Motor Finance Claims Kendal - FCA Mis-Selling Investigation

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Motor Finance Claims Kendal - FCA Mis-Selling Investigation

Last updated: 27 February 2026

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Kendal, a town nestled within Cumbria’s North West region with a population of 30,000 (ONS Census 2021), is home to an estimated 2,835 drivers affected by motor finance mis-selling during the period from 6 April 2007 to 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates). This figure underscores the significant impact of flawed financial practices on local car buyers.

How Motor Finance Mis-Selling Affected Kendal

Local dealerships such as Arnold Clark Kendal, JCT600 Kendal, Lookers Kendal, and Peter Vardy Kendal were among those that sold Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the period of investigation. These agreements often came with [discretionary commission](https://mlj.org.uk/glossary/discretionary-commission-arrangement) arrangements, which incentivised dealers to push certain types of financing over others. Major lenders operating in Kendal included 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 facilitated the sale of motor finance agreements that may have been unsuitable for many consumers due to these discretionary commission structures.

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) investigation revealed widespread mis-selling practices across 12.1 million eligible agreements (FCA, March 2026) during the period from 6 April 2007 to 1 November 2024. This affected a total of £7.5 billion worth of motor finance (FCA, March 2026). The investigation found that discretionary commission arrangements led dealers and lenders to prioritise more lucrative financing options, often at the expense of consumer suitability.

How Kendal Residents Can Check Their Finance Agreements

To determine if your car finance agreement was mis-sold, Kendal residents should review their contracts carefully. Key dates to consider are agreements entered into between 6 April 2007 and 1 November 2024. Look for any signs of unsuitable financing, such as a higher-than-necessary interest rate or an excessively high monthly payment that does not align with your financial situation. Gather all relevant documents including the finance agreement, vehicle purchase contract, and any correspondence related to changes in terms or complaints you may have filed previously. If you suspect mis-selling, compare these documents against the FCA guidelines on motor finance agreements for further clarity.

How to Complain Directly to Your Lender for Free

You can complain directly to your lender for free if you believe that your car finance agreement was mis-sold. Major lenders in Kendal include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). Each of these lenders has a dedicated complaints process designed to address such issues without the need for external claims management companies. If your complaint is not resolved satisfactorily by your lender, you can escalate it to the Financial Ombudsman Service (FOS), which provides a free and impartial service for resolving disputes between consumers and financial services providers. You do not need a [claims management company](https://mlj.org.uk/guides/complaints-about-claims-management-companies) to handle this process; all necessary steps can be taken directly through official channels.

Sources and References

FCA, 2024
ONS Census 2021
Financial Conduct Authority (FCA)
Financial Ombudsman Service (FOS)
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 Kendal are potentially affected by motor finance mis-selling?

Based on calculations using ONS Census 2021 population data and FCA estimates, approximately 2,835 drivers in Kendal may be affected by motor finance mis-selling.

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

If you believe your motor finance agreement was mis-sold to you, it is advisable to review the terms of your contract and any communication with the lender. You can also complain directly to your lender for free without involving a claims management company.

What are some signs that my motor finance agreement might have been mis-sold in Kendal?

Signs of mis-selling may include being pressured into financing beyond what you could afford, not understanding the terms and conditions fully, or being given misleading information about your options. If any of these apply to your situation, further investigation is recommended.

How can I find out more about motor finance mis-selling in Kendal?

For detailed information on motor finance mis-selling affecting residents of Kendal, you should consult local financial advisors or seek guidance from the Financial Conduct Authority (FCA) website. You do not need a claims management company to handle your case.

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.