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Lincolnshire, home to approximately 769,000 residents (ONS Census 2021), has seen an estimated 72,670 affected drivers due to motor finance mis-selling between 6 April 2007 and 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates). This article explores the impact of this issue on Lincolnshire residents and what they can do to address potential financial harm.
## How Motor Finance Mis-selling Affected Lincolnshire
Dealerships in Lincolnshire, such as Inchcape Lincolnshire, Pendragon Lincolnshire, Marshall Motor Group Lincolnshire, and Sytner Lincolnshire, were among those involved in the sale of
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the period under investigation. These dealerships often partnered with major lenders to offer financing options that could be potentially misleading or unfair.
The major lenders operating in Lincolnshire include
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 were part of a broader industry practice where sales incentives might have encouraged dealers to push customers towards more expensive finance deals.
## The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into
discretionary commission arrangements used by motor finance providers between 6 April 2007 and 1 November 2024. This period saw 12.1 million eligible agreements (FCA, March 2026), with a total value of £7.5 billion (FCA estimate). On average, each affected customer may have paid around £829 more than they should have (FCA estimate).
The investigation uncovered issues related to the way dealerships and lenders structured their commission arrangements, which sometimes incentivised sales staff to recommend finance deals that were not in customers' best interests. This could lead to higher interest rates or additional fees, resulting in unnecessary financial burdens on consumers.
## How Lincolnshire Residents Can Check Their Finance Agreements
To determine if you have been affected by motor finance mis-selling, review your finance agreements carefully for any discrepancies or unfair terms. Focus on the dates between 6 April 2007 and 1 November 2024, as these are critical to the FCA investigation period. Gather all relevant documentation, including contracts, invoices, and correspondence with lenders.
Look for signs of aggressive sales tactics, such as being pressured into signing up for a particular finance deal without proper explanation or comparison to other options available. If you notice any irregularities or suspect that your agreement was not conducted fairly, it is important to take action promptly.
## How to
Complain Directly to Your Lender for Free
You can complain directly to your lender for free if you believe you have been affected by motor finance mis-selling. Major lenders operating in Lincolnshire include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW).
Contacting the lender directly is your first step towards resolving any issues related to unfair practices. You do not need a
claims management company; these companies often charge high fees and may not provide better outcomes than handling complaints yourself.
If you are unsatisfied with your lender's response or if they fail to address your concerns adequately, you can escalate the matter to the
Financial Ombudsman Service (
FOS) for free. The FOS is an independent body that can review your complaint and make a final decision based on fairness.
## 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.