Home › Guides › Skoda Car Finance Claims — PCP and HP Mis-Selling Guide

Skoda Car Finance Claims — PCP and HP Mis-Selling Guide

Last updated: 28 February 2026

## Skoda Vehicles and the FCA Motor Finance Investigation Skoda vehicles were commonly sold through Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements during the Financial Conduct Authority's (FCA) investigation period from 6 April 2007 to 1 November 2024. This period affected millions of car finance agreements across the industry, with an estimated 12.1 million eligible agreements (FCA, March 2026) being impacted (FCA estimate). The FCA identified issues related to discretionary commission arrangements (DCAs), which could have affected Skoda owners who financed their vehicles through these types of agreements. ## How Skoda Vehicles Are Typically Financed Skoda vehicles are typically financed by several major lenders, including Volkswagen Financial Services (VFS), Black Horse, and MotoNovo Finance. These lenders offer both PCP and HP financing options to customers looking to purchase a new or used Skoda vehicle. ### Personal Contract Purchase (PCP) In a PCP agreement, the customer makes monthly payments for an agreed period while retaining the option to either return the car at the end of the term, buy it outright by paying the Guaranteed Minimum Future Value (GMFV), or extend the finance with new terms. This type of financing is popular among Skoda buyers due to its flexibility and often lower monthly payment options. ### Hire Purchase (HP) Hire Purchase is a more straightforward form of car finance where you pay off the full cost of the vehicle over an agreed period, typically with fixed monthly payments. At the end of the agreement, ownership transfers to the customer without any further obligations. ## The FCA Motor Finance Investigation and Skoda Owners The FCA's investigation into motor finance practices revealed that many lenders, including those commonly used by Skoda dealerships (such as VFS, Black Horse, and MotoNovo Finance), engaged in discretionary commission arrangements (DCAs). DCAs allowed lenders to offer higher interest rates than necessary, resulting in inflated profits. This practice affected millions of car buyers across the industry, with an estimated £7.5 billion being overcharged (FCA estimate). For Skoda owners who financed their vehicles through these agreements during the specified period from 6 April 2007 to 1 November 2024, there is a potential for compensation based on the FCA's findings. ## How to Check Your Agreement - Date Range: Ensure that the finance agreement was active between 6 April 2007 and 1 November 2024. - Lender: Verify which lender provided your car finance. Common lenders for Skoda are Volkswagen Financial Services, Black Horse, and MotoNovo Finance. By cross-referencing these details, you can better understand if your agreement falls within the scope of the FCA investigation and potential redress scheme. ## Which Lenders Provided Finance for Skoda? ### Volkswagen Financial Services (VFS) Volkswagen Financial Services is a major player in car finance, offering a wide range of products to customers purchasing Skoda vehicles. VFS is known for its full financing options and has been involved in the FCA investigation due to the use of DCAs. ### Black Horse Black Horse is another significant lender that provides car finance to Skoda buyers. Known for its competitive rates and flexible agreements, Black Horse also found itself under scrutiny during the FCA's investigation period. ### MotoNovo Finance MotoNovo Finance offers a variety of financing solutions tailored to individual needs and budgets. Like VFS and Black Horse, MotoNovo has been identified as one of the lenders potentially affected by DCAs over the specified time frame. ## How to Complain Directly to Your Lender for Free If you believe your Skoda finance agreement was impacted by DCAs, it is important to know that you can complain directly to your lender at no cost. The following steps outline how to initiate this process: 1. Identify the Lender: Confirm which lender provided your car finance (Volkswagen Financial Services, Black Horse, or MotoNovo Finance). 2. Review Your Agreement: Check the terms and conditions of your finance agreement for any discrepancies. 3. Contact the Lender: Reach out to your lender using their customer service contact information. Explain that you are lodging a complaint based on the FCA investigation findings regarding DCAs. 4. Document Everything: Keep records of all communications, including emails, letters, and phone calls. You can complain directly to your lender for free - you do not need a claims management company. Lenders are required by law to handle complaints fairly and provide a resolution within eight weeks. ## What Compensation Could Skoda Owners Receive? Based on the FCA's estimates, affected car finance agreements could receive an average of £829 in compensation (FCA estimate). The actual amount varies depending on several factors: - Interest Rate Difference: If your lender charged you higher interest rates than necessary due to DCAs. - Term and Amount Financed: Longer terms or larger amounts financed may result in more significant overcharges. It is important to review your agreement thoroughly and gather any relevant documentation before initiating a complaint to maximize the potential compensation. ## Escalating to the Financial Ombudsman Service If your lender does not resolve your complaint within eight weeks, you have the right to escalate it to the Financial Ombudsman Service (FOS) for free. The FOS is an independent body that investigates complaints and makes decisions on behalf of consumers. When submitting a complaint to the FOS, ensure that all relevant documentation and evidence are included. The FOS will review your case impartially and provide a ruling based on fairness and reasonableness. ## Timeline The FCA redress scheme aims to process compensation claims efficiently but may take some time due to the large number of affected agreements. If you submit a complaint directly to your lender or through the FOS, be prepared for an ongoing timeline that could extend beyond several months. It is crucial to stay informed about updates from both your lender and the FCA regarding the redress scheme's progress. ## Sources and References - Financial Conduct Authority (FCA). "Estimate of agreements affected by discretionary commission arrangements." 2024. - Office for National Statistics (ONS). "Census data: Car ownership trends in the UK." 2021.

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.

--- 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.

Frequently Asked Questions

What is the process for making a Skoda car finance claim?

To make a Skoda car finance claim, you can start by reviewing your agreement to see if there were any mis-selling issues such as incorrect affordability assessments or misleading information about fees and charges. You can also complain directly to Skoda Finance free of charge before considering external advice.

How common are Skoda PCP claims related to mis-selling?

Skoda PCP claims related to mis-selling have been relatively common, as the Financial Conduct Authority (FCA) has estimated that 12.1 million eligible agreements were potentially missold between April 6, 2007 and November 1, 2024 (FCA estimate).

Can I still make a Skoda car finance claim if my contract is older than the FCA’s review period?

If your Skoda car finance agreement was entered into before April 6, 2007, you may not be covered by the FCA’s redress scheme. However, it doesn’t mean you cannot make a claim; you can still complain directly to Skoda Finance or seek advice from independent financial advisors.

What should I do if my complaint to Skoda Finance is unsuccessful?

If your complaint to Skoda Finance regarding a mis-sold car finance agreement is not resolved, you have the option to escalate it to the Financial Ombudsman Service (FOS). The FOS can review your case and provide an impartial decision.

What does the FCA scheme cover

The amount of compensation you might receive from a successful Skoda PCP claim varies depending on the specifics of your case, but the FCA has estimated that car finance claims can result in an FCA-estimated scheme average of £829 per eligible agreement per complaint (FCA estimate). More complex cases may lead to higher payouts.

Important: MLJ.org.uk is an independent information resource. We are not a claims management company, solicitor, law firm, or financial adviser. We do not process claims, take fees, or provide advice. Where the law gives you a right to complain or claim directly (to a lender, council, FOS, court, or regulator), you can do so without paying a third party. MLJ.org.uk is operated by Copious Ltd, registered in England and Wales, company number 11437826.