Black Horse, the UK's largest motor finance provider by volume and part of Lloyds Banking Group, has been at the centre of a significant FCA investigation into discretionary commission arrangements. This probe aims to address potential mis-selling practices that may have affected millions of customers over nearly 17 years. As of November 2024, the FCA estimates that 12.1 million eligible agreements (FCA, March 2026) between April 6, 2007, and November 1, 2024, with a total redress estimate of £7.5 billion (FCA estimate) and an FCA-estimated average of £829 per eligible agreement.
Who is Black Horse?
Black Horse is the motor finance arm of Lloyds Banking Group, offering financing solutions for cars, vans, and motorbikes. As one of the most prominent players in the UK’s car finance market, Black Horse has played a significant role in providing financial assistance to consumers seeking to purchase vehicles.
What Happened
The Financial Conduct Authority (FCA) initiated an investigation into discretionary commission arrangements used by several motor finance providers, including Black Horse. The focus was on whether these practices may have led to mis-selling and unfair treatment of customers. Discretionary commissions are additional payments made to car dealers beyond the standard financing agreement that could influence sales decisions in ways that might not always benefit consumers.
How Many People Are Affected
The FCA's investigation covers a period from April 6, 2007, to November 1, 2024. During this time, 12.1 million eligible agreements (FCA, March 2026) by motor finance providers like Black Horse. The total estimated redress amount is £7.5 billion (FCA estimate), with an FCA-estimated average of £829 per eligible agreement.
If you believe that your motor finance agreement was affected by the discretionary commission issue, it’s important to understand how to
complain directly without needing a
claims management company. You can contact Black Horse through their dedicated complaints page at https://www.blackhorse.co.uk/complaints or via phone at 0344 824 4365. Alternatively, you can send your complaint in writing to the following address:
Black Horse PO Box 6180 Wolverhampton WV1 9RF
You can complain to Black Horse directly for free - you do not need a claims management company.
What to Do Next
If you are considering making a complaint, here are some steps to follow:
- Gather Documentation: Collect all relevant documents such as your motor finance agreement, payment records, and any correspondence with Black Horse.
- Check Agreement Dates: Ensure that the date of your motor finance agreement falls within the FCA's investigation period (April 6, 2007, to November 1, 2024).
- Complain Directly: Submit your complaint through Black Horse’s official channels as mentioned above.
Timeline
Once you submit your complaint, it typically takes about eight weeks for Black Horse to respond with a decision. If you are unsatisfied with their response or if they fail to provide one within the stipulated timeframe, you can escalate your case to the
Financial Ombudsman Service (
FOS). The FOS is an independent service that provides free and impartial support in resolving complaints between consumers and financial services providers.
By following these steps, you ensure that you are handling the process efficiently and transparently. Remember, it’s essential to address any issues directly with Black Horse before considering further action through external bodies like the Financial Ombudsman Service.
For more detailed information or specific advice tailored to your situation, consider reaching out to independent legal experts who can provide guidance on the next steps.
Latest: The FCA has confirmed the car finance compensation scheme on 30 March 2026. 12.1 million agreements are eligible, with an FCA-estimated scheme average of £829 per eligible agreement. Read the full details.
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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.