### Opening paragraph Since April 2007, Honda vehicles were commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements. The Financial Conduct Authority (FCA) investigation into
[discretionary commission](https://mlj.org. ### Opening paragraph Since April 2007, Honda vehicles were commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements. ### How Honda vehicles are typically financed When purchasing a Honda vehicle, buyers often opt for financing through various lenders. Common providers include Honda Financial Services (HFS),
Black Horse, and
Close Brothers Motor Finance. These agreements allow customers to finance their car over an extended period, either through PCP or HP. #### Personal Contract Purchase (PCP) PCP is a popular option that allows you to pay a deposit upfront and then make monthly payments for the duration of the agreement. At the end of the contract, you have the choice to return the vehicle, purchase it at its Guaranteed Future Value (GFV), or trade it in for another car. #### Hire Purchase (HP) HP is a straightforward financing option where you pay an initial deposit and then make regular monthly payments until the total amount owed is paid off. Once all payments are made, ownership of the vehicle transfers to you outright. ### The FCA motor finance investigation and Honda owners The FCA launched an extensive investigation into discretionary commission arrangements (DCAs) used by lenders during car finance agreements from 6 April 2007 to 1 November 2024. This period saw significant growth in the use of PCP and HP financing, particularly for Honda vehicles. According to the FCA's findings, 12.1 million eligible agreements were affected across the industry (FCA estimate). These DCAs allowed lenders to charge higher interest rates than they would have otherwise due to commissions paid by dealerships. As a result, many Honda buyers may have overpaid on their financing arrangements. ### How to Check Your Agreement under the FCA redress scheme, there are several key factors to consider: -
Agreement Type: Is it a PCP or HP contract? -
Date Range: Was the agreement signed between 6 April 2007 and 1 November 2024? -
Lender Identification: Which lender provided your finance (Honda Financial Services, Black Horse, Close Brothers Motor Finance)? By verifying these details, you can assess whether your Honda car finance agreement falls within the scope of the FCA investigation. ### Which lenders provided finance for Honda? #### Honda Financial Services (HFS) Honda Financial Services is a direct provider that offers financing options specifically tailored to Honda vehicles. Their agreements often include competitive interest rates and flexible payment terms designed to cater to different customer needs. #### Black Horse Black Horse, known as
Santander Consumer Finance until 2019, provides finance solutions for various car brands, including Honda. They offer a range of products like PCP and HP that are widely used in the market. #### Close Brothers Motor Finance Close Brothers Motor Finance is another significant player in the automotive financing sector. Their agreements with Honda dealerships provide customers with multiple payment options to suit their financial circumstances. ### How to
complain directly to your lender for free If you believe your car finance agreement was affected by DCAs, you can initiate a complaint process directly with your lender at no cost. For Honda owners, this would involve contacting: -
Honda Financial Services (HFS) -
Black Horse -
Close Brothers Motor Finance Each of these lenders has established procedures for handling complaints related to the FCA investigation. You do not need to hire a
claims management company; you can complain directly to your lender for free. ### What compensation could Honda owners receive? The average amount of potential compensation per affected car finance agreement is estimated at £829 (FCA estimate). However, the actual amount may vary based on several factors: -
Interest Rate Difference: The discrepancy between the interest rate charged and what should have been applied. -
Term and Amount Financed: Longer-term agreements with higher amounts financed could result in larger compensation claims. ### Escalating to the
Financial Ombudsman Service If your complaint is unresolved after eight weeks, you can escalate it to the Financial Ombudsman Service (
FOS). The FOS provides a free service for resolving disputes between consumers and financial services companies. They will review your case impartially and make a decision based on fairness. ### Timeline The FCA redress scheme aims to process complaints systematically over time. Given the scale of affected agreements, it is essential to initiate your complaint promptly: -
Immediate Response: Start by contacting your lender directly. -
Ombudsman Escalation: If unresolved after eight weeks, escalate to the FOS. ### Sources and references This guide draws information from various sources including: - Financial Conduct Authority (FCA) reports on discretionary commission arrangements - Industry statistics and estimates provided by the FCA - Official documentation from Honda Financial Services, Black Horse, and Close Brothers Motor Finance By following these steps and understanding your rights as a consumer, you can deal with the process of claiming compensation for any financial discrepancies related to your Honda car finance agreement.
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.