Black Horse DCA Update 2026 - What Discretionary Commission Customers Need to Know
The FCA has confirmed the details of a redress scheme for customers affected by discretionary commission arrangements (DCA) in motor finance deals. This update specifically addresses Black Horse, one of the largest players in the UK's motor finance market and part of Lloyds Banking Group.
What is Happening with Black Horse and DCA?
Lloyds Banking Group has set aside over £2 billion to compensate customers for potential mis-selling issues related to discretionary commission arrangements. The Financial Conduct Authority (FCA) confirmed on 30 March 2026 that there are 12.1 million agreements affected, with an average compensation amount of £829 and a total estimated payout of £7.5 billion.
Did Black Horse Use Discretionary Commission?
Yes, Black Horse was one of the largest users of DCA in the UK motor finance market. Under these arrangements, dealers could set the interest rate on your finance deal, meaning higher rates led to increased commissions for the dealer.
How Much Could You Get Back from Black Horse?
The average compensation per affected agreement is £829. However, the amount you receive may vary depending on the commission paid and the size of your loan. For some customers, especially those with larger loans or higher interest rates set by dealers, the compensation could be significantly more.
How to Complain to Black Horse for Free
Complaining directly to Black Horse is straightforward and free:
- Find Your Agreement Details: Locate your finance agreement number or reference from when you applied for the motor finance.
- Contact Black Horse: Write a formal letter to their complaints department, including your name, address, contact details, and the relevant finance agreement number.
- Wait 8 Weeks: After submitting your complaint, you should receive an initial response within eight weeks. If unresolved after this period, escalate to the Financial Ombudsman Service (FOS).
Black Horse Contact Details for Complaints
To make a formal complaint directly with Black Horse:
- Mailing Address: PO Box 6024, Andover SP10 1PD
- Phone Number: 0345 600 6203
- Email: commissioncomplaints@blackhorse.co.uk
Key Deadlines
The FCA has set the following implementation deadlines for the redress scheme:
- Post-2014 Agreements (Implement by 30 June 2026): These are agreements signed after January 2014.
- Pre-2014 Agreements (Implement by 31 August 2026): For agreements signed before January 2014.
- Final Complaint Deadline: 31 August 2027 - ensure you submit your complaint well in advance to avoid missing out on compensation.
Do You Need a Claims Company?
No, you do not need a claims management company. Complaining directly to Black Horse is free and straightforward. By following the steps outlined above, you can make an effective complaint without incurring additional fees or costs.
If you believe you have been affected by DCA issues with your motor finance agreement from Black Horse, it's important to act now. Use the contact details provided to start the process and secure any compensation you are entitled to under the FCA redress scheme.