Motor Finance Claims Liverpool - FCA Investigation

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Motor Finance Claims Liverpool - FCA Investigation

Last updated: 26 February 2026

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Liverpool residents are affected by an estimated 45,936 cases of motor finance mis-selling between 6 April 2007 to 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates). With a population of 486,100 (ONS Census 2021), many drivers in Liverpool may have been misled about the terms of their Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements.

How Motor Finance Mis-selling Affected Liverpool

Dealerships such as Arnold Clark Liverpool, JCT600 Liverpool, Lookers Liverpool, and Peter Vardy Liverpool were among those that sold PCP/HP finance in the city. Major lenders operating within Liverpool 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 dealerships and lenders played a significant role in the motor finance market during the period when mis-selling was prevalent.

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) launched an investigation into discretionary commission arrangements used by motor finance providers. This investigation uncovered widespread mis-selling affecting 12.1 million eligible agreements (FCA, March 2026) across the UK, with total overcharges estimated at £7.5 billion (FCA estimate), averaging £829 per agreement (FCA estimate). The FCA’s findings highlight that many drivers were misled about their financing options and could be entitled to a refund.

How Liverpool Residents Can Check Their Finance Agreements

If you believe you may have been affected by motor finance mis-selling, the first step is to review your finance agreements. Focus on documentation from 6 April 2007 to 1 November 2024, specifically looking for any evidence of discretionary commissions or inflated financing terms. Gather all relevant documents such as loan agreements, payment schedules, and correspondence with lenders.

How to Complain Directly to Your Lender for Free

You can complain directly to your lender for free without needing a claims management company. Major lenders operating in Liverpool include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). These lenders have internal processes designed to handle complaints effectively. If your complaint is not resolved satisfactorily by the lender, you can escalate it to the Financial Ombudsman Service (FOS), which provides a free service for resolving disputes between consumers and financial firms. The FOS offers an impartial review process that does not require legal representation or the involvement of a claims management company.

Sources and References

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 Liverpool are estimated to have been affected by motor finance mis-selling?

Based on ONS Census 2021 population data and FCA estimates, it is calculated that approximately 45,936 drivers in Liverpool may be affected by motor finance mis-selling (calculated using ONS Census 2021 population data and FCA estimates).

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

If you believe your car finance agreement may have been mis-sold, it is advisable to review the terms of your contract carefully and seek independent legal advice. You can also complain directly to your lender for free (FCA estimate).

Are there local dealerships in Liverpool that are known to offer fair motor finance deals?

Local dealership groups like Motor City Group or Auto World Ltd in Liverpool often provide competitive and transparent financing options. It is important to compare offers from multiple lenders and read the terms carefully before agreeing to a finance deal.

How can I check if my motor finance agreement is compliant with current regulations in Liverpool?

To ensure your motor finance agreement complies with current regulations, you should review the Consumer Credit Act 1974 and the Financial Conduct Authority (FCA) guidelines. You may also seek advice from a legal professional or contact your lender directly for clarification.

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.