Motor Finance Claims Preston - FCA Mis-Selling Investigation

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Motor Finance Claims Preston - FCA Mis-Selling Investigation

Last updated: 27 February 2026

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Preston, a city within Lancashire in the North West region with a population of 144,100 (ONS Census 2021), has many affected drivers due to motor finance mis-selling practices that occurred between 6 April 2007 and 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates). This issue has impacted local residents who entered into Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements with various dealerships in the area.

How Motor Finance Mis-selling Affected Preston

Dealerships such as Arnold Clark Preston, JCT600 Preston, Lookers Preston, and Peter Vardy Preston were among those that sold PCP/HP finance to local consumers. These dealerships operated under pressure from major lenders including 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 industry practice of using discretionary commission arrangements led to misleading information being provided to customers about the cost and terms of their finance agreements.

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) launched an investigation into motor finance mis-selling practices that affected 12.1 million eligible agreements (FCA, March 2026) across the UK, totalling £7.5 billion in value with an average loss per customer estimated at £829 (FCA estimate). This investigation uncovered widespread issues within the motor finance industry, revealing that many customers were misled about the true cost and terms of their finance deals.

How Preston Residents Can Check Their Finance Agreements

To determine if they are affected by motor finance mis-selling practices, Preston residents should review their finance agreements carefully. Key dates to consider are those falling between 6 April 2007 and 1 November 2024. Important documents to gather include the original loan agreement, any correspondence with lenders, and payment history records. If inconsistencies or discrepancies are found, it is advisable to seek further guidance from a financial advisor or solicitor.

How to Complain Directly to Your Lender for Free

You can complain directly to your lender for free without needing to engage a claims management company. 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) have dedicated teams to handle customer complaints. Providing evidence of mis-selling is crucial for a successful complaint. If your issue remains unresolved, you can escalate the matter to the Financial Ombudsman Service (FOS), which offers an independent review process at no cost.

Sources and References

FCA estimate figures: 12.1 million eligible agreements (FCA, March 2026), £7.5 billion total, £829 average per eligible agreement
Population data: ONS Census 2021
Local dealership information: Arnold Clark Preston, JCT600 Preston, Lookers Preston, Peter Vardy Preston
Major lenders operating in the area: 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 drivers in Preston are estimated to be affected by motor finance mis-selling?

Based on ONS Census 2021 population data and FCA estimates, around 13,617 drivers in Preston may have been affected by motor finance mis-selling.

What should I do if I suspect my car loan was mis-sold to me in Preston?

If you believe your car loan was mis-sold in Preston, the first step is to review your agreement and any correspondence with the lender. You can complain directly to your lender for free.

What are some common signs of motor finance mis-selling in Preston?

Common signs include being pressured into a quick decision, given incomplete or misleading information about repayment terms, or having unnecessary add-ons added without explanation. If you experienced any of these issues in Preston, it may indicate mis-selling.

How can I seek help if my car loan was mis-sold in Preston?

You do not need a claims management company to address motor finance mis-selling in Preston. Start by contacting your lender directly for free and requesting a review of your case based on the terms and conditions at the time you took out the agreement.

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.