Lombard, part of the NatWest Group and one of the largest asset finance providers in the UK, is currently addressing concerns raised by the Financial Conduct Authority (FCA) regarding discretionary commission arrangements used in motor finance agreements. The FCA investigation has identified significant issues with how these commissions were structured and paid to intermediaries, affecting a substantial number of consumers who financed their cars or vans through Lombard.
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.
Who is Lombard?
Lombard operates as the asset finance division within the NatWest Group, offering financing solutions for both individuals and businesses. Specifically, Lombard provides car and van loans, among other forms of asset financing. As part of one of the UK's major banking groups, Lombard has a wide reach across various sectors, including motor finance.
What Happened
The FCA investigation into discretionary commission arrangements began in earnest after it was discovered that intermediaries could receive payments from lenders like Lombard based on the volume and type of loans they facilitated. This practice was found to potentially incentivize intermediaries to recommend higher-cost products rather than focusing solely on the best interests of consumers.
In response, the FCA launched a review into discretionary commission arrangements used by motor finance providers such as Lombard. The investigation uncovered that these practices may have led to consumers being charged more for their loans than they would have been if the intermediaries had not received additional commissions. This could mean that customers were unknowingly entering into agreements with terms that were less favourable than what was available in the market.
How Many People Are Affected
The FCA has estimated that 12.1 million eligible agreements (FCA, March 2026) may be affected by these practices across various lenders, including Lombard. The total redress estimate for all affected consumers is around £7.5 billion (FCA estimate), with an FCA-estimated average of £829 per eligible agreement. This period covers loans arranged from 6 April 2007 to 1 November 2024.
If you believe that your car or van finance agreement was impacted by these practices, it is important to understand that you can
complain directly to Lombard for free. This process does not require the assistance of a
claims management company. You should visit Lombard’s complaints page at https://www.lombard.co.uk/complaints and follow the guidelines provided there.
Alternatively, you can contact Lombard's customer service team by phone at 0345 300 2627 or in writing to their address: Lombard, PO Box 500, Leeds LS98 1LD. The process is straightforward and designed to help customers resolve any issues they may have with their finance agreements.
What to Do Next
To proceed effectively with your complaint, it is advisable to gather all relevant documents related to your car or van loan. This includes the original agreement, correspondence with intermediaries, payment receipts, and any other paperwork that could provide evidence of how you were affected by the discretionary commission arrangements.
It's also crucial to check the dates on your finance agreement to ensure it falls within the period covered by the FCA investigation (6 April 2007 to 1 November 2024). Once you have compiled all necessary documents and verified the date, submit a detailed complaint directly to Lombard through their official complaints process.
Timeline
After submitting your complaint, you can expect an initial response from Lombard within eight weeks. This timeframe allows them to review your case thoroughly and provide a preliminary assessment of whether you are covered by the FCA redress scheme. based on the FCA findings.
If you do not receive a satisfactory resolution or if Lombard does not respond within this period, you have the right to escalate your complaint to the Financial Ombudsman Service (FOS). The FOS is an independent body that can provide impartial mediation and make binding decisions regarding financial disputes. You should ensure that all communications with Lombard are well-documented in case you need to refer your case to the FOS.
By following these steps, consumers can take proactive measures to address any potential issues arising from the motor finance mis-selling investigation without relying on claims management companies or similar services.
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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.