Motor Finance Claims Manchester - FCA Investigation

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Motor Finance Claims Manchester - FCA Investigation

Last updated: 26 February 2026

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Manchester, a city with a population of 552,000 (ONS Census 2021), has seen an estimated 52,164 drivers affected by motor finance mis-selling during the period from 6 April 2007 to 1 November 2024. This figure is calculated using ONS Census 2021 population data and FCA estimates.

How Motor Finance Mis-Selling Affected Manchester

Motor finance mis-selling has been a significant issue in Manchester, impacting residents who purchased cars through Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements from local dealerships. Well-known dealership groups such as Arnold Clark Manchester, JCT600 Manchester, Lookers Manchester, Peter Vardy Manchester, and others have sold these finance products. Major lenders operating in the area 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).

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) investigation into motor finance mis-selling uncovered significant issues related to discretionary commission arrangements used by lenders. During the period from 6 April 2007 to 1 November 2024, an estimated 12.1 million eligible agreements (FCA, March 2026), resulting in a total of £7.5 billion in repayments (FCA estimate). The FCA-estimated average overpayment per eligible agreement: £829.

How Manchester Residents Can Check Their Finance Agreements

Manchester residents who suspect they may have been mis-sold motor finance can review their agreements carefully to identify any potential issues. Key dates to consider are from 6 April 2007 to 1 November 2024, as these fall within the FCA investigation period. Important documents to gather include the original finance agreement, payment receipts, and any correspondence with the lender or dealership.

How to Complain Directly to Your Lender for Free

Manchester residents who believe they have been mis-sold motor finance can complain directly to their lender without incurring costs. Major lenders such as Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW) all offer free complaint processes. You do not need a claims management company; you can handle the process yourself or seek assistance from friends and family. If your lender does not resolve your issue to your satisfaction, you may escalate your complaint to the Financial Ombudsman Service (FOS), which provides an independent review of financial disputes at no cost to consumers.

Sources and References

Financial Conduct Authority (FCA)
Financial Ombudsman Service (FOS)
Office for National Statistics 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.

Frequently Asked Questions

How many drivers in Manchester are potentially affected by motor finance mis-selling?

Based on population data from the ONS Census 2021 and FCA estimates, it is estimated that around 52,164 drivers in Manchester may be affected by motor finance mis-selling.

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

If you believe your motor finance agreement was mis-sold to you in Manchester, the first step is to complain directly to your lender for free. This can help clarify your situation and potentially lead to a resolution without involving external parties.

What are the common signs of motor finance mis-selling in Manchester?

Common signs of motor finance mis-selling in Manchester include being pressured into signing up quickly, not fully understanding the terms of the agreement, or being told that financing is your only option when you might have other viable alternatives.

How much money could be involved if motor finance agreements were mis-sold to drivers in Manchester?

According to FCA estimates (FCA estimate), 12.1 million eligible agreements (FCA, March 2026) potentially mis-sold across the UK, involving £7.5 billion (FCA, March 2026). For Manchester specifically, this can translate into significant sums of money that may have been improperly charged or managed.

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.