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Stirling, a Scottish council area with a population of 94,200 (ONS Census 2021), has been affected by motor finance mis-selling. An estimated 8,902 drivers in Stirling may have been impacted by this issue, based on calculations using ONS Census 2021 population data and FCA estimates.
How Motor Finance Mis-Selling Affected Stirling
Motor finance mis-selling primarily involved
Personal Contract Purchase (PCP) and
Hire Purchase (HP) agreements sold at local dealerships in Stirling. Dealerships such as Arnold Clark Stirling, Peter Vardy Stirling, Eastern Western Motor Group Stirling, and Macklin Motors Stirling were likely to have been involved in these sales practices. Major lenders operating in the area included
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).
These dealerships were incentivised by
discretionary commission arrangements from lenders to sell finance agreements that may not have been suitable for their customers. This practice led to many consumers entering into agreements they did not fully understand or could afford.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into the motor finance industry, focusing on these discretionary commission arrangements. It found that 12.1 million eligible agreements (FCA, March 2026) by poor sales practices between 6 April 2007 and 1 November 2024 (FCA estimate). These agreements resulted in a total overpayment of £7.5 billion (FCA estimate), with an average customer paying approximately £829 more than they should have (FCA estimate).
How Stirling Residents Can Check Their Finance Agreements
If you suspect that your motor finance agreement may be affected, there are several steps to take:
1.
Review Your Documents: Look for any paperwork from the time of purchase that outlines the terms and conditions of your finance agreement.
2.
Check Agreement Dates: Ensure that your agreement was signed between 6 April 2007 and 1 November 2024, as this is the period under investigation by the FCA.
3.
Gather Relevant Information: Collect any relevant documents such as loan agreements, payment schedules, and correspondence with lenders.
If you believe your finance agreement was mis-sold, you can complain directly to your lender without needing a
[claims management company](https://mlj.org.uk/guides/complaints-about-claims-management-companies). Major lenders operating in Stirling 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 dedicated complaints procedure that allows you to raise issues free of charge.
If your complaint is not resolved satisfactorily by the lender, you can escalate it to the
Financial Ombudsman Service (
FOS) for further review. The FOS provides an independent and impartial service at no cost to consumers.
You do not need a claims management company to handle your complaint; you can manage this process directly with your lender or through the FOS if necessary.
Sources and References
- Financial Conduct Authority (2024)
- ONS Census 2021
- Financial Ombudsman Service
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.