Motor Finance Claims London - FCA Mis-Selling Investigation

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Motor Finance Claims London - FCA Mis-Selling Investigation

Last updated: 26 February 2026

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London, a city with a population of 8,799,800 (ONS Census 2021), has seen an estimated 831,581 drivers potentially affected by motor finance mis-selling between 6 April 2007 and 1 November 2024. This figure is based on data calculated using ONS Census 2021 population data combined with FCA estimates.

How Motor Finance Mis-Selling Affected London

Motor finance mis-selling has been a significant issue affecting car buyers in the bustling city of London. Major dealership groups such as Sytner London, Park Lane London, HR Owen London, and Lookers London sold Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements to thousands of residents during this period. These dealerships were among many across the region that facilitated these financing arrangements through various lenders. The major lenders operating in London include Black Horse (part of 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). Each of these lenders was involved in the discretionary commission arrangements that led to widespread mis-selling issues.

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) launched an investigation into motor finance practices following numerous complaints from consumers. The findings revealed that 12.1 million eligible agreements (FCA, March 2026) by mis-selling (FCA estimate), resulting in a total of £7.5 billion being involved, with the FCA-estimated average overpayment of £829 per eligible agreement. This period, spanning from 6 April 2007 to 1 November 2024, exposed significant flaws in the motor finance industry's practices.

How London Residents Can Check Their Finance Agreements

London residents who suspect they may have been affected by mis-selling can take several steps to check their finance agreements. Key things to look for include excessive fees, hidden commissions, and misleading terms of payment. Dates relevant to this investigation are from 6 April 2007 to 1 November 2024. To gather necessary documents, customers should obtain copies of all correspondence with the lender, including emails, letters, and any agreements signed at the dealership. reviewing bank statements for payments made during the period can provide a clearer picture of potential mis-selling issues.

How to Complain Directly to Your Lender for Free

London residents who believe they have been affected by motor finance mis-selling should first contact their lender directly for free. Major lenders such as Black Horse, MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services all offer a complaints process that does not require the involvement of claims management companies. You can complain directly to your lender for free by following their specific complaint procedures, which are usually detailed on their websites or available through customer service. If the issue is not resolved satisfactorily, you can escalate it to the Financial Ombudsman Service (FOS) as a free and impartial alternative dispute resolution body.

Sources and References

ONS Census 2021
Financial Conduct Authority (FCA), 2024
Financial Ombudsman Service (FOS)

These sources provide full data and guidance on motor finance mis-selling issues affecting London residents. You can complain to your lender directly for free. You do not need a claims management company to check whether you are owed compensation.

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 London drivers might have been affected by motor finance mis-selling?

Based on ONS Census 2021 population data and FCA estimates, approximately 831,581 drivers in London could potentially be affected by motor finance mis-selling.

What should I do if I suspect my motor finance agreement was mis-sold?

If you believe your motor finance agreement might have been mis-sold to you in London, it is advisable to review the terms of your contract and seek professional legal advice. Additionally, you can complain directly to your lender for free.

What was the average cost of compensation paid due to motor finance mis-selling complaints in London?

The Financial Conduct Authority (FCA) estimates that the average compensation paid out due to successful complaints related to motor finance agreements is £829 (FCA estimate).

How can I avoid being a victim of motor finance mis-selling in London?

To prevent falling prey to motor finance mis-selling in London, ensure you thoroughly understand the terms and conditions of any agreement before signing. It is also beneficial to shop around for better deals and compare offers from reputable lenders.

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.