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Leicester, a city with a population of 368,600 (ONS Census 2021), has seen an estimated 34,833 drivers potentially affected by motor finance mis-selling between 6 April 2007 and 1 November 2024. This figure is based on calculations using ONS Census 2021 population data combined with estimates from the Financial Conduct Authority (FCA).
How Motor Finance Mis-Selling Affected Leicester
Local dealerships in Leicester, including Inchcape Leicester, Pendragon Leicester, Marshall Motor Group Leicester, and Sytner Leicester, played a significant role in the sale of
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements. These agreements often came with
discretionary commission arrangements that were later found to be unfair by the FCA.
Dealerships typically worked closely with major lenders such as
[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 lenders provided financing options that dealerships could sell to customers, often earning additional commissions for doing so.
The FCA Motor Finance Investigation
In 2017, the Financial Conduct Authority (FCA) launched an investigation into discretionary commission arrangements used by motor finance providers. They found that these practices were unfair and misleading to consumers. As a result, 12.1 million eligible agreements (FCA, March 2026) across the UK have been affected, with total losses estimated at £7.5 billion (FCA estimate). The average loss per customer is around £829 (FCA estimate).
The investigation uncovered that dealerships were incentivised by higher commissions for selling finance products with less favourable terms to customers. This often meant that consumers ended up paying more than they should have, without being fully aware of the implications.
How Leicester Residents Can Check Their Finance Agreements
Leicester residents who suspect they may have been affected can check their finance agreements carefully. Key points to look for include:
- Dates: Ensure your agreement was in place between 6 April 2007 and 1 November 2024.
- Documents: Gather all relevant documents, including contracts, loan agreements, and any correspondence with lenders.
If you find discrepancies or suspect mis-selling, it’s important to take action immediately. You can
complain directly to your lender for free without needing a
claims management company.
How to Complain Directly to Your Lender for Free
Major lenders operating in Leicester 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 procedure that you can use to address any issues related to your finance agreement.
When lodging a complaint with your lender:
1.
Identify the issue: Clearly state what aspect of the agreement is problematic.
2.
Provide evidence: Include relevant documents and dates.
3.
Follow up: If you are not satisfied with the response, escalate it to the
Financial Ombudsman Service (
FOS), a free service that can review your case impartially.
Remember: You can complain directly to your lender for free. There is no need to involve claims management companies in this process.
Sources and References
- Financial Conduct Authority (FCA)
- Office for National Statistics Census 2021
- 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.