Motor Finance Claims Shetland Islands - FCA Investigation

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Motor Finance Claims Shetland Islands - FCA Investigation

Last updated: 27 February 2026

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Shetland Islands residents are estimated to have around 2,164 drivers affected by motor finance mis-selling since 6 April 2007 (calculated using ONS Census 2021 population data and FCA estimates), out of a total population of 22,900 (ONS Census 2021). This issue has impacted local dealership groups such as Arnold Clark Shetland Islands, Peter Vardy Shetland Islands, Eastern Western Motor Group Shetland Islands, and Macklin Motors Shetland Islands. 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](https://mlj.org.uk/lenders/alphera-financial-services) Financial Services (BMW).

How motor finance mis-selling affected Shetland Islands

Motor finance mis-selling has been a significant issue for residents of Shetland Islands. Local dealerships such as Arnold Clark Shetland Islands, Peter Vardy Shetland Islands, Eastern Western Motor Group Shetland Islands, and Macklin Motors Shetland Islands sold Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements to many customers during the period from 6 April 2007 to 1 November 2024. These dealerships have been known for their extensive network across Scotland, including in Shetland Islands. 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) were also involved. These financial institutions provided financing options that may have been mis-sold due to improper sales practices and incentives offered to dealerships.

The FCA motor finance investigation

The Financial Conduct Authority (FCA) conducted an extensive investigation into motor finance agreements, uncovering widespread issues with discretionary commission arrangements used by lenders and dealerships. These arrangements potentially led to customers being misled or receiving poor advice when entering into PCP and HP contracts. According to the FCA's estimates, 12.1 million eligible agreements (FCA, March 2026) across the UK during the specified period (FCA estimate), resulting in a total of £7.5 billion in mis-sold finance (FCA estimate). The average amount overcharged per customer was approximately £829 (FCA estimate).

How Shetland Islands residents can check their finance agreements

Shetland Islands residents who suspect they have been affected by motor finance mis-selling should review their finance agreements carefully. Key dates to consider are from 6 April 2007 to 1 November 2024, as these were the years covered by the FCA investigation. Important documents to gather include:

Finance agreement documentation
Receipts and payment records
Correspondence with lenders or dealerships

By examining these documents, residents can identify potential signs of mis-selling such as excessive fees, undisclosed interest rates, or misleading information about vehicle values.

How to complain directly to your lender for free

Residents in Shetland Islands who believe they have been affected by motor finance mis-selling should first contact their lender directly. 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 can complain directly to your lender for free without needing a claims management company. If your complaint is not resolved satisfactorily by the lender, you may escalate it to the Financial Ombudsman Service (FOS) as a free and impartial service. This ensures that all avenues are explored before considering further legal action.

Sources and references

Office for National Statistics (ONS) Census 2021
Financial Conduct Authority (FCA) estimates: 12.1 million eligible agreements (FCA, March 2026), £7.5 billion total, £829 average per eligible agreement
Financial Ombudsman Service (FOS)
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 Shetland Islands may have been affected by motor finance mis-selling?

Based on calculations using ONS Census 2021 population data and FCA estimates, approximately 2,164 drivers in the Shetland Islands might be among those affected.

What should I do if I suspect I have a motor finance mis-selling case in Shetland Islands?

If you believe that your motor finance agreement was mis-sold to you, the first step is to review your contract details and understand your rights. You can complain directly to your lender for free without needing to involve a claims management company.

What are common signs of motor finance mis-selling in Shetland Islands?

Common indicators include being pressured into agreeing to a high-interest rate, not understanding the repayment terms, or being misled about the total cost of your agreement. If you recognize any of these issues, it is advisable to seek advice from an independent financial advisor.

How can motor finance mis-selling impact residents in Shetland Islands?

Motor finance mis-selling could result in significant financial difficulties for residents in the Shetland Islands, including excessive repayment costs. For instance, if 12.1 million eligible agreements (FCA, March 2026) across the UK have been affected by similar issues, this underscores the potential scale of impact on those who might be overpaying.

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.