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York residents are facing a significant financial issue stemming from motor finance mis-selling, affecting an estimated 19,902 drivers (calculated using ONS Census 2021 population data and FCA estimates). With a total population of 210,600 (ONS Census 2021), many York residents who purchased vehicles through
personal contract purchase (PCP) or
hire purchase (HP) agreements may have been sold finance products on unfair terms. This issue has prompted the Financial Conduct Authority (FCA) to investigate and take action against lenders.
How Motor Finance Mis-selling Affected York
Several local dealerships in York, such as JCT600 York, Stoneacre York, Lookers York, Arnold Clark York, and others, sold PCP or HP finance agreements during the period from 6 April 2007 to 1 November 2024. These agreements were often associated with major lenders operating in the area, 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 FCA investigation revealed that
[discretionary commission](https://mlj.org.uk/glossary/discretionary-commission-arrangement) arrangements were widespread during this period. These arrangements allowed dealerships to receive higher commissions for selling finance products with more expensive terms or features, leading to unfair pricing for consumers. According to the FCA's estimates, 12.1 million eligible agreements (FCA, March 2026) were affected across the UK, resulting in a total of £7.5 billion (FCA estimate) being paid out by lenders. On average, each affected driver could be entitled to around £829 (FCA estimate).
How York Residents Can Check Their Finance Agreements
York residents who suspect they may have been mis-sold finance should review their agreements carefully. Look for any discrepancies or unfair terms that might indicate a discretionary commission was involved. Key dates to check are from 6 April 2007 to 1 November 2024, as these were the times when the FCA identified potential issues with motor finance mis-selling.
To gather evidence, residents should collect all relevant documents including their original finance agreement, any correspondence with the dealership and lender, and records of payments made. This documentation will be crucial in supporting a complaint to your lender.
Residents who believe they have been mis-sold motor finance can complain directly to their lender at no cost. Major lenders operating in York 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; you can manage the process yourself or seek free advice from the lender.
If your initial complaint is not resolved to your satisfaction, you have the right to escalate it to the
Financial Ombudsman Service for a free and impartial review. This service provides an additional layer of protection for consumers who believe they have been treated unfairly by their lenders.
Sources and References
- Financial Conduct Authority (FCA)
- Financial Ombudsman Service (FOS)
- Office for National Statistics Census 2021 (ONS)
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.