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Stoke-on-Trent, a city with a population of 256,400 (ONS Census 2021), has seen many affected drivers due to motor finance mis-selling practices that occurred between 6 April 2007 and 1 November 2024. How did this widespread issue affect the residents of Stoke-on-Trent, and what steps can they take to address it?
How Motor Finance Mis-Selling Affected Stoke-on-Trent
Motor finance mis-selling has been a significant concern for many drivers in Stoke-on-Trent. Local dealerships such as Sytner Stoke-on-Trent, Pendragon Stoke-on-Trent, Listers Group Stoke-on-Trent, and John Clark Motor Group Stoke-on-Trent have all been involved in the sale of
Personal Contract Purchase (PCP) and
Hire Purchase (HP) agreements during this period. Major lenders operating in the area include
[Black Horse](https://mlj.org.uk/lenders/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 and lenders facilitated a system where customers may have been sold financial products they did not need or could not afford.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance mis-selling that involved 12.1 million eligible agreements (FCA, March 2026) across the UK (FCA estimate), with a total value of £7.5 billion and an average of £829 per customer (FCA estimate). This investigation uncovered that many dealerships were incentivized to push financial products through
discretionary commission arrangements, which often resulted in customers being sold unnecessary or overly expensive finance agreements.
How Stoke-on-Trent Residents Can Check Their Finance Agreements
Residents of Stoke-on-Trent who believe they may have been affected by motor finance mis-selling can take proactive steps to check their agreements. Here’s what to look for:
- Dates: Focus on the period from 6 April 2007 to 1 November 2024.
- Documents: Gather any documentation related to your car purchase, including contracts, payment receipts, and correspondence with lenders or dealerships.
You should also review whether you were sold a financial product that was not in line with your needs or budget. If you notice discrepancies or feel misled, it is essential to take further action.
If you suspect motor finance mis-selling, the first step is to complain directly to your lender. The major lenders operating in Stoke-on-Trent 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 do this for free without the need for a
claims management company.
Why complain directly?
1.
Simplification: Direct complaints are straightforward and require no upfront costs.
2.
Free Service: The
Financial Ombudsman Service (
FOS) provides an independent escalation route if your lender does not resolve the issue to your satisfaction, ensuring that you receive a fair hearing without any fees.
You do not need a claims management company; you can handle everything yourself or seek advice from free resources like the FCA’s website or local financial advocacy groups. Remember, taking action now could provide significant relief and potential refunds.
Sources and References
- Financial Conduct Authority (FCA), 2024
- Office for National Statistics (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.