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Motor Finance Claims Reading — FCA Mis-Selling Investigation

Last updated: 27 February 2026

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Reading, a town with a population of 174,200 (ONS Census 2021), has seen an estimated 16,462 drivers affected by motor finance mis-selling between 6 April 2007 and 1 November 2024, based on calculations using ONS Census 2021 population data and FCA estimates. This issue has impacted numerous residents who entered into Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements with local dealerships in the area. ## How Motor Finance Mis-selling Affected Reading Local dealerships such as Caffyns Reading, Harwoods Reading, Lookers Reading, and Hendy Group Reading sold PCP/HP finance to many residents. Major lenders operating within Reading 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 dealerships facilitated the sale of motor finance agreements that may have been mis-sold due to [discretionary commission](https://mlj.org.uk/glossary/discretionary-commission-arrangement) arrangements with lenders. ## The FCA Motor Finance Investigation The Financial Conduct Authority (FCA) launched an investigation into motor finance mis-selling after uncovering widespread issues with discretionary commission payments. This practice incentivized dealers and lenders to sell products that were not in the best interest of consumers, leading to millions of affected agreements. According to the FCA's estimates, 12.1 million eligible agreements (FCA, March 2026) impacted during the period from 6 April 2007 to 1 November 2024 (FCA estimate). The total value of these agreements amounted to £7.5 billion (FCA estimate) (FCA, March 2026). ## How Reading Residents Can Check Their Finance Agreements Residents who suspect they may have been affected by motor finance mis-selling should review their finance agreements carefully. Key elements to look for include the terms and conditions, any additional fees or charges, and the dates of when the agreement was signed. Agreements entered into between 6 April 2007 and 1 November 2024 are within the scope of the FCA's investigation. To check their finance agreements, residents should gather all relevant documents such as contract papers, payment records, and any correspondence with lenders or dealerships. This information will be crucial when initiating a complaint directly with your lender. ## How to Complain Directly to Your Lender for Free You can complain directly to your lender for free without the need for a claims management company. Major lenders in Reading include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). Each of these institutions has procedures in place to handle complaints and provide redress. If your complaint is not resolved satisfactorily by the lender, you can escalate it to the Financial Ombudsman Service (FOS) for a free and impartial review. The FOS will investigate the matter further and make a binding decision if necessary. ## Sources and References - Office of National Statistics (ONS) Census 2021 - Financial Conduct Authority (FCA), 2024

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 Reading are estimated to be affected by motor finance mis-selling?

Based on ONS Census 2021 population data and FCA estimates, approximately 16,462 drivers in Reading may have been impacted by motor finance mis-selling (calculated using ONS Census 2021 population data and FCA estimates).

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

If you believe your motor finance agreement may have been mis-sold, you can complain directly to your lender for free. You do not need a claims management company.

Are there specific local dealerships in Reading where motor finance agreements were potentially mis-sold?

Motor finance mis-selling could have occurred at various car dealerships in Reading, including franchises of groups like Lookers and Evans Halshaw. It is important to review your agreement details and seek professional advice if necessary.

What average compensation amount can I expect if my motor finance agreement was mis-sold in Reading?

The FCA estimates that the average compensation paid out for mis-sold motor finance agreements across the UK is £829 (FCA estimate). However, this figure may vary depending on individual circumstances.

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.