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Solihull, a town with a population of 217,300 (ONS Census 2021), has been affected by motor finance mis-selling, impacting an estimated 20,535 drivers (calculated using ONS Census 2021 population data and FCA estimates). The issue stems from the widespread use of Payment Protection Insurance (PPI) in
Personal Contract Purchase (PCP) and
Hire Purchase (HP) agreements by dealerships within Solihull.
How Motor Finance Mis-selling Affected Solihull
Local dealerships such as Sytner Solihull, Pendragon Solihull, Listers Group Solihull, and John Clark Motor Group Solihull sold PCP/HP finance to consumers. These dealerships worked closely with major lenders including
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 facilitate the financing of vehicles.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) conducted a detailed investigation into motor finance practices from 6 April 2007 to 1 November 2024. The inquiry uncovered that dealerships had been offering PPI as an add-on product in PCP/HP agreements, which was often unnecessary and sometimes mis-sold. This practice led to 12.1 million eligible agreements (FCA estimate) worth a total of £7.5 billion (FCA estimate), with the average mis-selling case involving losses of £829 (FCA estimate).
How Solihull Residents Can Check Their Finance Agreements
To determine if you were impacted by motor finance mis-selling, residents should review their finance agreements carefully. Focus on any mention of PPI or protection plans that may have been added to your agreement without proper disclosure. The dates relevant for this investigation are from 6 April 2007 through 1 November 2024. Gather all documents related to your vehicle purchase, including the contract, correspondence with lenders, and any documentation provided by the dealership.
If you believe you were affected by motor finance mis-selling, you can complain directly to your lender for free. Major lenders operating in Solihull 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; the process can be managed independently. If your initial complaint is unresolved or you are unsatisfied with the outcome, you can escalate your case to the
Financial Ombudsman Service for free.
Sources and References
- FCA Investigation into Motor Finance (FCA, 2024)
- Population of Solihull (ONS Census 2021)
- Affected Drivers Calculation Based on Population Data (calculated using ONS Census 2021 population data and FCA estimates)
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.