Photo by kevin grieve on Pexels
According to a recent estimate, approximately 54,054 drivers in Somerset have been affected by motor finance mis-selling from 6 April 2007 to 1 November 2024. This figure is based on the population of Somerset, which stands at 572,000 (ONS Census 2021) and FCA estimates.
How Motor Finance Mis-Selling Affected Somerset
Motor finance mis-selling in Somerset has had a significant impact on local residents who financed their vehicles through various dealerships. Dealerships such as Vospers Somerset, Hendy Group Somerset, Dick Lovett Somerset, and Wessex Garages Somerset were among those that sold
Personal Contract Purchase (PCP) or
Hire Purchase (HP) finance agreements to customers in the region. These agreements were often facilitated by major lenders operating in Somerset, 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).
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance agreements following the discovery of
discretionary commission arrangements between lenders and dealerships. These arrangements incentivized dealers to sell more expensive financing products, leading to overcharging and mis-selling practices. As a result, 12.1 million eligible agreements (FCA, March 2026) by these practices during the period from 6 April 2007 to 1 November 2024 (FCA estimate). The total amount of overcharged fees amounted to £7.5 billion (FCA estimate) (FCA, March 2026).
How Somerset Residents Can Check Their Finance Agreements
Somerset residents who suspect they were affected by motor finance mis-selling should review their finance agreements carefully. Here are steps to take:
1.
Identify the Agreement Dates: Check if your agreement was signed between 6 April 2007 and 1 November 2024.
2.
Gather Documents: Retrieve all documents related to your finance agreement, including contracts, payment slips, and any correspondence with the lender or dealership.
3.
Review Terms: Look for terms that suggest you were charged more than necessary or misled about the cost of your financing options.
If you believe your motor finance agreement was mis-sold, you can complain directly to your lender for free. Major lenders operating in Somerset include Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services (BMW). Each of these lenders has a process for handling complaints, which you can find on their websites or by contacting them directly.
You do not need to use a
claims management company. Instead, you can submit your complaint through the lender's official channels, detailing your concerns based on the evidence you have gathered. If your lender does not resolve your issue satisfactorily, you can escalate it to the
Financial Ombudsman Service (
FOS) at no cost.
Sources and References
- ONS Census 2021
- FCA Estimate: 12.1 million eligible agreements (FCA, March 2026) (6 April 2007 to 1 November 2024)
- FCA Estimate: £7.5 billion total overcharged fees
- FCA Estimate: £829 average per eligible agreement overcharge per agreement
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.