Motor Finance Claims Telford - FCA Mis-Selling Investigation

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Motor Finance Claims Telford - FCA Mis-Selling Investigation

Last updated: 27 February 2026

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Telford, a town with a population of 175,800 (ONS Census 2021), has an estimated 16,613 drivers who may have been affected by motor finance mis-selling between 6 April 2007 and 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates). This issue involved several local dealerships in Telford such as Sytner Telford, Pendragon Telford, Listers Group Telford, and John Clark Motor Group Telford. These dealerships played a significant role in selling Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements to customers.

How motor finance mis-selling affected Telford

Local residents in Telford who purchased new or used vehicles through major lenders like 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) may have been impacted by motor finance mis-selling. These dealerships commonly offered financing options such as PCP or HP to customers, which were often bundled with additional services that could be overpriced or unnecessary. The issue arose due to a practice known as discretionary commission arrangements, where lenders provided incentives to dealers for selling certain types of finance products. This led to a situation where dealers might have recommended higher-cost financing options without fully considering what was best for the customer's financial situation.

The FCA motor finance investigation

In response to this issue, the Financial Conduct Authority (FCA) launched an investigation into discretionary commission arrangements in the motor finance sector. The findings revealed that 12.1 million eligible agreements (FCA, March 2026) across the UK, with a total impact of £7.5 billion and an average loss per customer estimated at £829 (FCA estimate). This period covered agreements from 6 April 2007 to 1 November 2024.

How Telford residents can check their finance agreements

To determine if you were affected by motor finance mis-selling, Telford residents should review their finance agreement documents carefully. Key aspects to look for include the dates of the agreement (between 6 April 2007 and 1 November 2024), any additional fees or charges that seemed excessive, and whether the agreement was a PCP or HP contract. Gathering these documents will help you assess if your lender's practices were fair.

How to complain directly to your lender for free

If you suspect that you have been affected by motor finance mis-selling, it is important to know that you can complain directly to your lender for free. Major lenders operating in Telford 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 process available on their websites. You do not need to hire a claims management company to handle your complaint. Instead, you can follow the lender's guidelines for submitting a formal complaint. If you are unsatisfied with the response from your lender, you have the option to escalate your case to the Financial Ombudsman Service (FOS), which is an independent body that provides free dispute resolution services.

Sources and references

Financial Conduct Authority (FCA)
Office for National Statistics Census 2021
Local dealership groups in Telford: Sytner Telford, Pendragon Telford, Listers Group Telford, John Clark Motor Group Telford
Major lenders operating in Telford: Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, Alphera Financial Services (BMW)
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.

Frequently Asked Questions

How many drivers in Telford might have been affected by motor finance mis-selling?

Based on calculated estimates using ONS Census 2021 population data and FCA estimates, approximately 16,613 drivers in Telford may have been impacted by motor finance mis-selling.

What should I do if I suspect my motor finance agreement was mis-sold to me in Telford?

If you believe your motor finance agreement was mis-sold, the first step is to contact your lender directly for free. You can also seek advice from independent sources like the Financial Ombudsman Service or Citizens Advice.

Why might a dealership in Telford have mis-sold my motor finance agreement?

Dealerships in Telford, as with any other area, may have engaged in practices such as overcharging for add-ons, pressuring customers into higher-cost loans, or not explaining the terms clearly. This could lead to agreements being considered unfair or unsuitable.

What are the potential consequences of motor finance mis-selling for residents of Telford?

Motor finance mis-selling can result in financial difficulties such as higher monthly payments, unnecessary add-ons, and difficulty refinancing. It's important to review your agreement carefully or seek professional advice from sources like local solicitors or legal aid providers.

Important: MLJ.org.uk is an independent information resource. We are not a claims management company, solicitor, law firm, or financial adviser. We do not process claims, take fees, or provide advice. Where the law gives you a right to complain or claim directly (to a lender, council, FOS, court, or regulator), you can do so without paying a third party. MLJ.org.uk is operated by Copious Ltd, registered in England and Wales, company number 11437826.