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Lancashire, a county in North West England with a population of 1,237,000 (ONS Census 2021), has seen an estimated 116,896 drivers affected by motor finance mis-selling between 6 April 2007 and 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates). This issue has led to significant concerns among residents who have been impacted by the
discretionary commission arrangements used by car dealerships and lenders.
How Motor Finance Mis-selling Affected Lancashire
Motor finance mis-selling in Lancashire involved several local dealerships, such as Arnold Clark Lancashire, JCT600 Lancashire, Lookers Lancashire, and Peter Vardy Lancashire. These dealerships sold
personal contract purchase (PCP) or
hire purchase (HP) agreements to customers. The major lenders operating in the area included
[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). These financial institutions facilitated the sale of these finance products through discretionary commission arrangements that were later found to be unfair.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance practices in 2017. It uncovered that many lenders and dealerships had used unfair discretionary commission arrangements, leading to 12.1 million eligible agreements (FCA, March 2026) being affected across the UK (£7.5 billion total; £829 average per eligible agreement per agreement according to FCA estimates). This period spans from 6 April 2007 to 1 November 2024.
How Lancashire Residents Can Check Their Finance Agreements
Lancashire residents who suspect they may have been affected by motor finance mis-selling should review their finance agreements. Key dates to consider are between 6 April 2007 and 1 November 2024, as this is the period covered by the FCA investigation. To check if you were impacted, gather your finance agreement documents, including any letters or emails from lenders regarding changes in terms or fees.
If you believe you have been a victim of motor finance mis-selling, you can complain directly to your lender for free. The major lenders operating in Lancashire 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 to handle your complaint; many residents have successfully resolved their issues by contacting the lender directly. If you are unsatisfied with the response from your lender, the next step is to escalate your case to the
Financial Ombudsman Service (
FOS) for free.
Sources and References
- FCA
- Financial Ombudsman Service (FOS)
- Office for National Statistics (ONS Census 2021)
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.