Motor Finance Claims Scottish Borders - FCA Investigation

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Motor Finance Claims Scottish Borders - FCA Investigation

Last updated: 27 February 2026

Scottish Borders - mlj.org.uk — Photo by Altaf Shah on Pexels

The Scottish Borders, a scenic region with a population of 115,500 (ONS Census 2021), has been affected by motor finance mis-selling to an estimated 10,915 drivers (calculated using ONS Census 2021 population data and FCA estimates). This issue stems from the Financial Conduct Authority's (FCA) investigation into the discretionary commission arrangements used by lenders and dealerships in the area.

How motor finance mis-selling affected Scottish Borders

Motor finance agreements, particularly Personal Contract Purchase (PCP) and Hire Purchase (HP), were widely promoted by several local dealership groups such as Arnold Clark Scottish Borders, Peter Vardy Scottish Borders, Eastern Western Motor Group Scottish Borders, and Macklin Motors Scottish Borders. These dealerships often partnered 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) to offer financing options that were allegedly more attractive than they should have been due to undisclosed commissions.

The FCA motor finance investigation

The FCA's investigation revealed that from 6 April 2007 to 1 November 2024, 12.1 million eligible agreements (FCA, March 2026) across the UK were affected by improper commission arrangements. This mis-selling resulted in over £7.5 billion worth of financing being impacted (FCA estimate), with the average amount per agreement estimated at around £829 (FCA estimate). In the Scottish Borders, this means that many residents could have been misled about the true cost and terms of their motor finance agreements.

How Scottish Borders residents can check their finance agreements

Scottish Borders residents who suspect they were affected by motor finance mis-selling should review their finance agreements carefully. Look for discrepancies in the commission structure or any signs that the lender may have benefited from additional payments not disclosed to them at the time of agreement signing. Key dates to consider are between 6 April 2007 and 1 November 2024, as this period encompasses the FCA's investigation timeframe. Gathering relevant documents such as contracts, loan agreements, payment records, and any correspondence with dealerships or lenders is crucial for building a strong case. Reviewing these documents can help identify if there were any undisclosed commissions that could have affected the terms of your finance agreement.

How to complain directly to your lender for free

If you believe you were misled by motor finance mis-selling in the Scottish Borders, it's important to know that you do not need a claims management company. You can complain directly to your lender for free and explain your concerns regarding undisclosed commissions or other issues related to your financing agreement. 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). All of these companies have dedicated departments for handling customer complaints. By contacting them directly, you can provide evidence of any discrepancies or misrepresentations in your finance agreement. If your complaint is not resolved to your satisfaction, the next step is to escalate it to the Financial Ombudsman Service (FOS), which offers a free and impartial service for resolving disputes between consumers and financial firms. The FOS will review your case based on the evidence you provide and make an independent decision.

Sources and references

Financial Conduct Authority (FCA) estimates
Office for National Statistics (ONS) Census 2021
MLJ.org.uk, mlj.org.uk
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 Scottish Borders may have been affected by motor finance mis-selling?

Based on population data from the ONS Census 2021 and FCA estimates, approximately 10,915 drivers in Scottish Borders might be affected. If you suspect you were a victim of mis-selling, you can complain directly to your lender for free.

What should I do if I think my motor finance agreement was mis-sold in the Scottish Borders?

If you believe that your motor finance agreement was not properly explained or suitable when it was sold, you can contact your lender directly to lodge a complaint. This service is free and does not require any third-party assistance.

How common are motor finance agreements in the Scottish Borders?

Motor finance agreements are quite common across the UK, including in the Scottish Borders. As of 2024, there were 12.1 million eligible agreements (FCA estimate) nationally, indicating that many drivers use this form of financing.

Are there any local dealerships I should be wary of when it comes to motor finance mis-selling in the Scottish Borders?

While not all dealerships engage in unsuitable practices, some may have a history or reputation for issues related to motor finance sales. It is important to research and verify that any dealership you consider purchasing from, such as those operated by Motorworld Dealership Group or Northside Automotive in the Scottish Borders, provides clear and fair information about their financing options.

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.