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Shrewsbury, a town with a population of 75,000 (ONS Census 2021), has been affected by motor finance mis-selling issues that have impacted an estimated 7,088 drivers (calculated using ONS Census 2021 population data and FCA estimates). This ongoing issue stems from the Financial Conduct Authority's (FCA) investigation into
discretionary commission arrangements between car dealerships and lenders. The FCA's findings reveal that 12.1 million eligible agreements (FCA, March 2026) by this mis-selling practice, resulting in losses of £7.5 billion across those agreements (FCA estimate) (FCA, March 2026). This investigation covers the period from 6 April 2007 to 1 November 2024.
How motor finance mis-selling affected Shrewsbury
Motor finance mis-selling in Shrewsbury occurred primarily through
Personal Contract Purchase (PCP) and
Hire Purchase (HP) agreements. Local dealerships such as Sytner Shrewsbury, Pendragon Shrewsbury, Listers Group Shrewsbury, and John Clark Motor Group Shrewsbury played significant roles in selling these finance products. 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).
The FCA motor finance investigation
The FCA's investigation into discretionary commission arrangements highlighted that car dealerships were incentivised to sell certain finance products over others. This practice led to customers being sold more expensive agreements than necessary, thereby causing significant financial harm. The FCA found that 12.1 million eligible agreements (FCA, March 2026) across the UK were affected by this mis-selling, resulting in an estimated loss of £7.5 billion (FCA estimate) and an FCA-estimated scheme average per eligible agreement: £829 (FCA estimate).
How Shrewsbury residents can check their finance agreements
Shrewsbury residents who suspect they may have been victims of motor finance mis-selling should review their finance agreements carefully. Key points to look for include the dates of the agreement, typically between 6 April 2007 and 1 November 2024 (FCA investigation period). Gather all relevant documents such as loan offers, contract papers, and correspondence with your lender.
If you believe your finance agreement was mis-sold, you can complain directly to your lender for free. Major lenders operating in Shrewsbury 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; the process is straightforward and can be handled directly with your lender. If you are unsatisfied with the response from your lender, the next step is to escalate your complaint to the
Financial Ombudsman Service, which offers free and impartial dispute resolution.
Sources and references
- FCA
- Financial Ombudsman Service ([FOS](https://mlj.org.uk/guides/financial-ombudsman-service))
- ONS Census 2021
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.