Motor Finance Claims North East - FCA Investigation

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Motor Finance Claims North East - FCA Investigation

Last updated: 27 February 2026

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How many drivers in North East have been affected by motor finance mis-selling? The estimated number of affected drivers is 250,142, calculated using ONS Census 2021 population data and FCA estimates. With a total population of 2,647,000 (ONS Census 2021), this issue has significant implications for residents across the region.

How Motor Finance Mis-selling Affected North East

Motor finance mis-selling affected numerous drivers in North East through various dealerships and lenders operating in the area. Local dealership groups such as Lookers North East, Vertu Motors North East, Bristol Street Motors North East, and Jennings Motor Group North East were involved in selling Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements to customers. During the period from 6 April 2007 to 1 November 2024, major lenders operating in North East included 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 involved in discretionary commission arrangements that may have led to mis-selling.

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) launched an investigation into motor finance agreements after uncovering issues related to discretionary commission payments between dealerships and major lenders. The investigation found that 12.1 million eligible agreements (FCA, March 2026) had been affected, resulting in a total of £7.5 billion (FCA estimate) misallocated funds. On average, each driver lost around £829 (FCA estimate). These findings highlight the widespread nature of motor finance mis-selling and its impact on consumers across North East.

How North East Residents Can Check Their Finance Agreements

North East residents who suspect they may have been affected by motor finance mis-selling can check their finance agreements for several key indicators. First, review your agreement documents to see if there are any discrepancies or inconsistencies in the terms and conditions. gather relevant documentation such as sales contracts, payment receipts, and correspondence with lenders. It is important to pay attention to the dates of your finance agreement. The affected period spans from 6 April 2007 to 1 November 2024. If you have a finance agreement within this timeframe, it is worth investigating further.

How to Complain Directly to Your Lender for Free

If you believe you were mis-sold motor finance, you can complain directly to your lender for free without the need for a claims management company. Major lenders operating in North East include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). You should first contact your lender directly to discuss your concerns and provide any relevant documentation supporting your case. If you are unsatisfied with the response from your lender, you can escalate your complaint to the Financial Ombudsman Service (FOS), a free service that provides fair and independent resolution for financial disputes.

Sources and References

FCA estimates: 12.1 million eligible agreements (FCA, March 2026)
Total misallocated funds: £7.5 billion (FCA estimate)
Average loss per driver: £829 (FCA estimate)
Population of North East: 2,647,000 (ONS Census 2021)
Estimated affected drivers in North East: 250,142 (calculated using ONS Census 2021 population data and FCA estimates)
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 North East may have been affected by motor finance mis-selling?

Based on calculations using ONS Census 2021 population data and FCA estimates, approximately 250,142 drivers in the North East may have been impacted by motor finance mis-selling.

What should I do if I suspect I was a victim of motor finance mis-selling in North East?

If you believe you were a victim of motor finance mis-selling, you can complain directly to your lender for free. You do not need a claims management company.

What is the average amount claimed by victims of motor finance mis-selling in North East?

The average claim from motor finance mis-selling cases is £829 (FCA estimate).

How many motor finance agreements were affected nationwide, and how does this impact residents of North East?

As of 1 November 2024, there are 12.1 million eligible agreements (FCA, March 2026) estimated by the FCA. The potential impact on residents in North East is significant given the regional population size.

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.