Introduction
Citroen vehicles were commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the Financial Conduct Authority’s (FCA) investigation period from 6 April 2007 to 1 November 2024. This period saw significant issues with
discretionary commission arrangements (DCAs), affecting 12.1 million eligible agreements across the industry, with an estimated total compensation of £7.5 billion and an average claim value of £829 per agreement (FCA estimate). As a Citroen owner who entered into these finance agreements during this time frame, the FCA-estimated scheme average is £829 per eligible agreement.
How Citroen Vehicles are Typically Financed
When purchasing a new or used Citroen vehicle, buyers often opt for PCP or HP financing arrangements. These options allow consumers to acquire the car with lower monthly payments compared to outright purchase and offer flexibility in terms of ownership at the end of the agreement. Common lenders providing finance for Citroen vehicles include PSA Finance (now Stellantis Financial Services),
Black Horse, and
Close Brothers Motor Finance.
- PSA Finance (now Stellantis Financial Services): This lender is a subsidiary of Stellantis NV, which owns several automobile brands including Citroen. They offer a range of finance products tailored to the needs of Citroen buyers.
- Black Horse: A subsidiary of Volkswagen Group UK, Black Horse provides financing options for various car manufacturers, including Citroen.
- Close Brothers Motor Finance: This lender offers competitive rates and flexible terms for Citroen owners looking to purchase or lease a vehicle through PCP or HP agreements.
The FCA Motor Finance Investigation and Citroen Owners
The FCA's investigation uncovered widespread issues with discretionary commission arrangements (DCAs) in the car finance sector. These DCAs allowed lenders to charge higher interest rates than necessary, resulting in significant overcharges for consumers. For Citroen owners specifically, this meant that many who financed their vehicles through PCP or HP agreements during the period from 6 April 2007 to 1 November 2024 could have been affected by inflated financing costs.
The investigation found that 12.1 million eligible agreements were impacted across the industry (FCA estimate). The total estimated compensation for these overcharges amounts to £7.5 billion, with an average claim value of £829 per agreement (FCA estimate).
How to Check Your Agreement Agreement Type: Ensure that your financing arrangement was either a PCP or HP agreement.
2.
Date Range: Verify that the agreement commenced between 6 April 2007 and 1 November 2024.
3.
Lender Identification: Confirm which lender provided the finance for your Citroen vehicle.
If all of these criteria are met, there is a high likelihood that the FCA-estimated scheme average is £829 per eligible agreement.
Which Lenders Provided Finance for Citroen?
Three major lenders frequently provide financing options for Citroen vehicles:
- PSA Finance (now Stellantis Financial Services): This lender offers competitive finance products specifically designed for Citroen buyers, often with attractive terms and conditions.
- Black Horse: Known for its flexibility in offering various financial solutions to car owners, including those who choose a Citroen vehicle.
- Close Brothers Motor Finance: Provides full financing options tailored to the needs of Citroen drivers, ensuring that they can secure affordable monthly payments while acquiring their preferred model.
Each of these lenders plays a significant role in facilitating the acquisition of new and used Citroen vehicles through financial arrangements such as PCP and HP agreements.
If you believe your Citroen finance agreement was affected by DCAs, you can initiate a complaint directly with the lender at no cost. For Citroen owners who financed their vehicle through PSA Finance (now Stellantis Financial Services), Black Horse, or Close Brothers Motor Finance, this process involves submitting a formal request to the relevant department within each institution.
You do not need a
claims management company to file your complaint; you can handle it independently at no cost. This allows you to retain full control over the process and avoid any additional fees that might be associated with using third-party services.
What Compensation Could Citroen Owners Receive?
The amount of compensation the FCA-estimated scheme average is £829 per eligible agreementced. Based on FCA estimates, the average claim value is approximately £829 per affected agreement (FCA estimate). However, individual cases may vary based on these specific details.
If your complaint is not resolved within 8 weeks or you disagree with the lender's decision, you have the right to escalate your case to the Financial Ombudsman Service (
FOS) for free. The FOS provides an independent review of financial disputes and can help resolve disagreements between consumers and lenders fairly.
When submitting a complaint to the FOS, ensure that all relevant documentation is included, such as copies of your original finance agreement and any correspondence with your lender regarding the issue. The FOS will then review your case impartially and make a final decision.
Timeline
The timeline for the FCA redress scheme involves several stages:
1.
Initial Investigation: The FCA identified issues with DCAs in car finance agreements across multiple lenders.
2.
Redress Scheme Implementation: Lenders were required to establish internal processes to identify affected customers and offer compensation where appropriate.
3.
Complaint Submission Period: Affected Citroen owners are encouraged to submit complaints directly to their lender within this period.
4.
FOS Review: For unresolved complaints, the FOS will conduct an independent review.
While there is no fixed end date for the redress scheme as of 1 November 2024, affected individuals should act promptly to ensure they receive timely compensation.
Sources and References
- Financial Conduct Authority (FCA). "Motor Finance: Finalised Guidance on Charging Commission Arrangements." FCA, 2024.
- Office for National Statistics (ONS). UK Census. ONS Census 2021.
- Stellantis NV. "Stellantis Financial Services Overview." Stellantis NV, 2023.
- Volkswagen Group UK. "Black Horse Finance Solutions." Black Horse, 2024.
- Close Brothers Motor Finance. "Motor Finance Options for Citroen Owners." Close Brothers Motor Finance, 2023.
These sources provide full information on the regulatory context and specific practices of lenders involved in financing Citroen vehicles during the affected period.
Key FCA Figures
The FCA confirmed on 30 March 2026: 12.1 million eligible agreements, £829 average compensation per agreement, £7.5 billion total redress at 75% consumer uptake, and £9.1 billion total cost to firms. The scheme covers agreements from 6 April 2007 to 1 November 2024. Two deadlines apply: 30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014. Final complaint deadline: 31 August 2027.
You can complain to your lender directly for free. You do not need a claims management company.
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MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.