Fiat vehicles were commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the period of the Financial Conduct Authority’s (FCA) investigation into motor finance practices, which ran from 6 April 2007 to 1 November 2024. This investigation found that 12.1 million eligible agreements across the industry were affected by issues related to
discretionary commission arrangements (DCAs), leading to potential overcharging of consumers.
How Fiat Vehicles are Typically Financed
Fiat vehicles have historically been financed through various lenders, including Fiat Financial Services (now Stellantis Financial Services),
Black Horse, and
MotoNovo Finance. These financial institutions play a critical role in facilitating the purchase of new and used Fiats for both retail customers and fleet operators.
Personal Contract Purchase (PCP)
Personal Contract Purchase is a popular financing option where you pay monthly instalments to lease a vehicle with an agreed final payment, known as the Guaranteed Minimum Future Value (GMFV). If the GMFV is met or exceeded, the buyer has the option to buy the car outright at that price. Alternatively, they can return the vehicle and cease payments.
Hire Purchase (HP)
Hire Purchase involves buying a Fiat outright through finance. Under HP, you make regular monthly payments until the total cost of the vehicle, plus interest, is paid off in full. At the end of the agreement, ownership transfers to the buyer.
The FCA Motor Finance Investigation and Fiat Owners
The FCA’s investigation into car finance practices uncovered significant issues related to DCAs, which are commission arrangements that allowed dealers to earn extra money from lenders based on the type of finance agreement chosen by customers. These commissions were often hidden from consumers, leading to potentially inflated interest rates or higher monthly payments than necessary.
For Fiat buyers specifically, this meant that when purchasing a vehicle through PCP or HP agreements with common lenders like Stellantis Financial Services and Black Horse, there was a possibility that the dealerships received additional undisclosed incentives for steering customers towards certain finance products. This resulted in 12.1 million eligible agreements across the industry being potentially affected (FCA estimate).
The total compensation estimated by the FCA to be paid out due to these issues is around £7.5 billion, with an FCA-estimated average of £829 per eligible agreement. The exact amount a Fiat owner might receive depends on factors such as the interest rate difference, the term of the finance agreement, and the total amount financed.
How to Check Your Agreement Agreement Type: Is it a PCP or HP agreement?
2.
Date Range: Was the loan taken out between 6 April 2007 and 1 November 2024?
3.
Lender Information: Which lender provided your car finance? Common lenders for Fiat include Stellantis Financial Services, Black Horse, and MotoNovo Finance.
If all these criteria match, it’s likely that your agreement was affected by the FCA’s findings on DCAs.
Which Lenders Provided Finance for Fiat?
Fiat Financial Services (Now Stellantis Financial Services)
Fiat Financial Services was a primary provider of car finance to customers purchasing Fiats. After the merger with other automotive brands under the Stellantis umbrella, it became known as Stellantis Financial Services. This lender is well-known for offering competitive finance options but faced scrutiny due to its involvement in DCAs.
Black Horse
Black Horse provides finance solutions for a variety of car brands, including Fiat. It offers both PCP and HP agreements, making it a common choice among Fiat buyers seeking flexible financing options. However, like other major lenders during the FCA’s investigation period, Black Horse was implicated in practices involving DCAs.
MotoNovo Finance
MotoNovo Finance is another significant player in the car finance market that has provided financial services to Fiat owners. Its range of products includes both HP and PCP agreements. The lender faced similar scrutiny as other major players during the FCA’s investigation period due to its involvement with DCAs.
If you suspect your car finance agreement is affected by issues identified in the FCA investigation, you can start the complaint process directly with your lender at no cost. For Fiat owners, this means contacting Stellantis Financial Services, Black Horse, or MotoNovo Finance.
The complaints process typically involves submitting a detailed account of your concerns along with any relevant documentation such as loan agreements and correspondence with sales staff. Most lenders have dedicated teams to handle these complaints and will respond within a set timeframe.
You can complain directly to your lender for free - you do not need a claims management company.
What Compensation Could Fiat Owners Receive?
Based on the FCA’s estimates, affected Fiat owners could be entitled to compensation ranging from £829 on average (FCA estimate), depending on the specific terms of their finance agreement and the extent of overcharging due to DCAs.
The exact amount will depend on various factors including:
- The difference in interest rates between what was charged versus a fair market rate.
- The length of the loan term.
- The total amount financed.
It’s important for Fiat owners to review their agreements carefully and consider all relevant documentation when determining potential compensation claims.
If your complaint is not resolved satisfactorily by your lender within eight weeks, you can escalate it to the Financial Ombudsman Service (
FOS) at no cost. The FOS provides an impartial service for resolving disputes between consumers and financial services companies.
When submitting a case to the FOS, ensure that all necessary documentation is included to support your claim. This includes any communications with your lender regarding the dispute and evidence of attempts made to resolve the issue internally.
Timeline
The FCA redress scheme, designed to compensate affected car finance customers, will continue processing claims until the end of 2025 (FOS estimates). It’s crucial for Fiat owners to act promptly if they believe their agreements were impacted by DCAs during the specified period. Starting the complaints process directly with your lender remains the recommended first step.
Sources and References
- Financial Conduct Authority (FCA), 2024
- ONS Census, 2021
- Stellantis Financial Services Official Website
- Black Horse Official Website
- MotoNovo Finance Official Website
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.