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As many as 517,954 drivers in Yorkshire and The Humber are potentially affected by motor finance mis-selling practices between 6 April 2007 and 1 November 2024 (calculated using ONS Census 2021 population data and FCA estimates), out of the region's total population of 5,481,000 (ONS Census 2021). This significant number highlights the widespread impact of financial irregularities within the motor finance industry during this period.
How Motor Finance Mis-selling Affected Yorkshire and The Humber
In Yorkshire and The Humber, numerous local dealerships were involved in selling
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements to customers. Prominent dealership groups such as JCT600 Yorkshire and The Humber, Stoneacre Yorkshire and The Humber, Lookers Yorkshire and The Humber, and Arnold Clark Yorkshire and The Humber have been associated with these sales practices.
The major lenders operating in the region include well-known names 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). These institutions played a crucial role in providing finance options to customers purchasing vehicles from local dealerships.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into motor finance mis-selling practices following revelations about
discretionary commission arrangements. These arrangements allowed lenders to pay sales incentives to dealership groups, potentially influencing the type of finance agreements recommended to customers. As a result, 12.1 million eligible agreements (FCA, March 2026) across the UK, with an estimated total sum of £7.5 billion and an average loss per customer of around £829 (FCA estimate).
The investigation uncovered that these practices could have led to customers being pushed towards more expensive finance options rather than receiving impartial advice on the best option for their financial situation.
How Yorkshire and The Humber Residents Can Check Their Finance Agreements
To determine if you were affected by motor finance mis-selling, residents of Yorkshire and The Humber should review their finance agreements from between 6 April 2007 to 1 November 2024. Key points to look for include:
- Whether the agreement was a PCP or HP plan
- If there are any clauses suggesting incentives were offered to the dealership based on your choice of finance product
You should gather all relevant documents, including loan agreements, application forms, and any correspondence with the lender regarding your finance terms.
If you suspect that you have been affected by motor finance mis-selling practices in Yorkshire and The Humber, it is crucial to know that you can complain directly to your lender for free. Major lenders such as Black Horse (Lloyds Banking Group), MotoNovo Finance, Close Brothers Motor Finance, Santander Consumer Finance, Barclays Partner Finance, and Alphera Financial Services are obligated to address any complaints regarding their past sales practices.
You do not need a
claims management company to handle your complaint; the process can be initiated directly with the lender. If you are unsatisfied with the response from the lender, the next step is to escalate the issue to the
Financial Ombudsman Service (
FOS), which provides an impartial and free service for resolving disputes.
Sources and References
- Office for National Statistics (ONS) Census 2021
- Financial Conduct Authority (FCA) estimates: 12.1 million eligible agreements (FCA, March 2026), £7.5 billion total, £829 average per eligible agreement loss per customer (FCA estimate)
- Motor Finance Association (MFA) guidelines
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.