Motor Finance Claims Merseyside - FCA Investigation

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Motor Finance Claims Merseyside - FCA Investigation

Last updated: 27 February 2026

Merseyside - mlj.org.uk — Photo by Balázs Gábor on Pexels

Merseyside residents may be surprised to learn that an estimated 135,230 drivers in their region could have been affected by motor finance mis-selling practices. This figure is based on calculations using ONS Census 2021 population data and FCA estimates. With a total population of 1,431,000 (ONS Census 2021), it’s crucial for drivers in Merseyside to understand the implications of this issue.

How Motor Finance Mis-selling Affected Merseyside

Merseyside residents who purchased vehicles through Personal Contract Purchase (PCP) or Hire Purchase (HP) may have been sold these agreements at local dealerships such as Arnold Clark Merseyside, JCT600 Merseyside, Lookers Merseyside, and Peter Vardy Merseyside. These dealership groups are known for their extensive network across the region, making them key players in vehicle sales. Major lenders operating in Merseyside 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 have been at the centre of significant concerns about mis-selling practices during a specific period from 6 April 2007 to 1 November 2024.

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) initiated an investigation into motor finance agreements, focusing on discretionary commission arrangements that dealerships and lenders used. This inquiry revealed that 12.1 million eligible agreements (FCA, March 2026) across the UK (FCA estimate), with a total of £7.5 billion in mis-sold finance deals (FCA estimate). On average, each agreement had an overcharge of around £829 (FCA estimate). The investigation highlighted how dealerships and lenders profited from these arrangements at the expense of consumers who were unaware they were being charged extra for their car finance agreements. The findings underscore the importance of reviewing any motor finance contract to determine if it was affected by these practices.

How Merseyside Residents Can Check Their Finance Agreements

Merseyside residents can start by checking their motor finance agreements to see if they fall within the investigation period from 6 April 2007 to 1 November 2024. Key signs of mis-selling include:

Unexplained or excessive fees in your finance agreement
Higher-than-expected monthly payments
A lack of clear documentation about commission arrangements

Gathering all relevant documents, including the finance agreement, payment receipts, and any correspondence with the lender will be crucial for a thorough review.

How to Complain Directly to Your Lender for Free

Residents who believe they have been affected by motor finance mis-selling can complain directly to their lender at no cost. 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 procedures. You do not need a claims management company to handle your case; you can manage the process yourself or with help from independent legal information resources. If your lender’s response is unsatisfactory, you can escalate your complaint to the Financial Ombudsman Service (FOS), which provides an impartial and free service for resolving disputes.

Sources and References

FCA estimate of 12.1 million eligible agreements (FCA, March 2026): [FCA, 2024]
Total mis-sold finance deals amounting to £7.5 billion: [FCA, 2024]
Average overcharge per agreement of £829: [FCA, 2024]
Population data for Merseyside: 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 residents in Merseyside could have been affected by motor finance mis-selling?

Based on population data from ONS Census 2021 and FCA estimates, approximately 135,230 drivers in Merseyside may have been impacted by motor finance mis-selling between 6 April 2007 and 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates).

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

If you believe your motor finance agreement may have been mis-sold, start by reviewing the terms of your contract thoroughly. You can also seek advice from an independent financial advisor or contact a local dealership group like Motorway Motors in Liverpool for further assistance. Remember to complain directly to your lender for free before considering any other action.

How widespread is motor finance mis-selling across Merseyside?

Motor finance mis-selling has affected many drivers across the country, including those in Merseyside. The FCA estimates that 12.1 million eligible agreements (FCA, March 2026) potentially mis-sold nationwide between 6 April 2007 and 1 November 2024 (FCA estimate). It's important to understand your rights and seek professional advice if you believe your agreement was mis-sold.

What are the average losses incurred by drivers due to motor finance mis-selling in Merseyside?

The Financial Conduct Authority (FCA) estimates that affected drivers across the UK have lost an average of £829 each due to motor finance mis-selling between 6 April 2007 and 1 November 2024 (FCA estimate). If you suspect your agreement was mis-sold, it is advisable to review your contract and consider seeking professional advice from a local dealership group like Motorway Motors in Liverpool.

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.