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Redditch, a town located within Worcestershire in the West Midlands region with a population of 85,000 (ONS Census 2021), has seen an estimated 8,032 drivers potentially affected by motor finance mis-selling between 6 April 2007 and 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates). This issue arose as a result of
discretionary commission arrangements that major lenders made with local dealerships in Redditch.
How Motor Finance Mis-selling Affected Redditch
Local dealerships such as Sytner Redditch, Pendragon Redditch, Listers Group Redditch, and John Clark Motor Group Redditch were involved in the sale of
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements. These dealerships facilitated financing options provided by major lenders like
Black Horse (Lloyds Banking Group),
MotoNovo Finance,
[Close Brothers](https://mlj.org.uk/lenders/close-brothers-motor-finance) Motor Finance,
Santander Consumer Finance, Barclays Partner Finance, and
[Alphera](https://mlj.org.uk/lenders/alphera-financial-services) Financial Services (BMW).
Dealerships in Redditch often sold these agreements to customers under discretionary commission arrangements. These arrangements allowed dealerships to receive higher commissions from lenders for recommending specific finance products, which could incentivise them to push certain deals over others that might be more suitable for the customer's financial situation.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance mis-selling in 2019 and uncovered significant issues. It was found that 12.1 million eligible agreements (FCA, March 2026) across the UK, involving a total of £7.5 billion (FCA estimate). On average, customers received compensation of around £829 (FCA estimate).
The FCA investigation highlighted the widespread use of discretionary commission arrangements, which led to dealerships prioritising sales that generated higher commissions for them rather than focusing on finding the best deals for their customers.
How Redditch Residents Can Check Their Finance Agreements
To determine if you were affected by motor finance mis-selling, Redditch residents should review their finance agreements closely. Specifically, look at any documentation or communication from your dealership and lender during the period between 6 April 2007 to 1 November 2024.
You can check for signs of mis-selling such as:
- Dealerships recommending specific finance products over others.
- Higher commissions paid by lenders for certain deals.
- Terms that seem unnecessarily complex or difficult to understand.
Collect any relevant documents, including loan agreements, dealer invoices, and correspondence from your lender. If you suspect that your agreement was affected, you should contact your lender directly to discuss the matter further.
If you believe you have been a victim of motor finance mis-selling in Redditch, it is important to know that you can complain directly to your lender for free. Major lenders operating in the area 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 handle your complaint; you can manage it yourself without any cost. If your lender does not resolve the issue satisfactorily, you have the option of escalating your case to the
Financial Ombudsman Service (
FOS) for free and impartial resolution.
Sources and References
- FCA (2024)
- ONS Census 2021
- Financial Conduct Authority Investigation into Motor Finance Mis-selling (2019)
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.