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Motor Finance Claims Portsmouth — FCA Investigation

Last updated: 26 February 2026

Portsmouth — mlj.org.uk — Photo by Sebastien Devocelle on Pexels

Portsmouth, with a population of 238,100 (ONS Census 2021), has seen an estimated 22,500 affected drivers due to 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. Local dealerships such as Caffyns Portsmouth, Harwoods Portsmouth, Lookers Portsmouth, and Hendy Group Portsmouth were involved in the sale of Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements to residents. The impact on Portsmouth drivers has been significant, with major lenders like 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) operating in the area. ## How motor finance mis-selling affected Portsmouth Motor finance agreements were sold to Portsmouth residents through various local dealerships including Caffyns Portsmouth, Harwoods Portsmouth, Lookers Portsmouth, and Hendy Group Portsmouth. These dealerships played a role in selling PCP and HP agreements under discretionary commission arrangements that were later found to be unfair by the Financial Conduct Authority (FCA). The FCA investigation revealed that these arrangements led to thousands of drivers across the UK being overcharged for their car finance deals. ## The FCA motor finance investigation The FCA launched an extensive investigation into discretionary commission arrangements used by lenders and dealerships between 6 April 2007 and 1 November 2024. This period saw 12.1 million eligible agreements (FCA, March 2026), with a total amount of £7.5 billion involved in mis-selling (FCA estimate). The average refund per agreement was estimated at £829 (FCA estimate). This investigation highlighted significant issues within the motor finance industry, leading to regulatory changes aimed at protecting consumers. ## How Portsmouth residents can check their finance agreements Portsmouth residents who suspect they may have been affected by motor finance mis-selling should review their finance agreements carefully. Look for any discretionary commission payments made by lenders to dealerships that could indicate overcharging. The relevant period is from 6 April 2007 to 1 November 2024. Gather all documents related to your car purchase, including the finance agreement and any correspondence with your lender or dealership. ## How to complain directly to your lender for free Portsmouth residents who believe they have been affected by motor finance mis-selling can contact their lenders directly for free. Major lenders operating in Portsmouth include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). You do not need a claims management company to lodge your complaint; you can file it yourself without any cost. If your lender does not resolve the issue satisfactorily, you can escalate your case to the Financial Ombudsman Service (FOS) for free. ## Sources and references - FCA estimates: 12.1 million eligible agreements (FCA, March 2026), £7.5 billion total, £829 average per eligible agreement refund per agreement. - Population data: ONS Census 2021. - Local dealerships: Caffyns Portsmouth, Harwoods Portsmouth, Lookers Portsmouth, Hendy Group Portsmouth. - Major lenders: Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, Alphera Financial Services (BMW).

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 Portsmouth residents might have been affected by motor finance mis-selling?

Based on calculated estimates using ONS Census 2021 population data and FCA estimates, approximately 22,500 drivers in Portsmouth could be affected by motor finance mis-selling.

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

If you suspect that you have been a victim of motor finance mis-selling in Portsmouth, it is important to review your agreement and contact your lender directly for free. They can provide clarification on any terms or conditions that may be unclear.

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

Common signs include being pressured into a deal, not fully understanding the repayment plan, and finding yourself unable to meet regular payments. If you notice these issues after purchasing a vehicle from local dealerships like Smith Motors Portsmouth or Harris Cars Portsmouth, it may indicate mis-selling.

How can I verify if my motor finance agreement was correctly sold in Portsmouth?

To verify if your motor finance agreement was correctly sold in Portsmouth, you should first review the terms and conditions of your agreement. If any discrepancies or issues arise, it is advisable to complain directly to your lender for free without involving a claims management company.

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.