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Genesis Car Finance Mis-Selling — FCA Investigation

Last updated: 26 February 2026

Are you considering whether your Genesis car finance agreement was part of the Financial Conduct Authority's (FCA) motor finance mis-selling investigation? During the period from 6 April 2007 to 1 November 2024, it is estimated that up to 12.1 million Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements were potentially affected by issues with discretionary commission arrangements involving Genesis cars. This article provides a full overview of how these finance agreements worked for Genesis vehicles and what steps you can take if you believe your agreement was mis-sold. ## How Genesis Cars Were Financed Genesis, the luxury car brand from South Korea, offers an array of high-end models that are often purchased through financing arrangements. Common lenders for Genesis cars during the period in question include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. Typical PCP agreements offered by these lenders allowed customers to make monthly payments over a set term (often 36 or 48 months) with an option to return the car at the end of the agreement or pay a final balloon payment to own it outright. Hire Purchase agreements generally involved longer terms and typically resulted in full ownership once all payments were made. ## The FCA Motor Finance Investigation The Financial Conduct Authority (FCA) launched a significant investigation into discretionary commission arrangements used by motor finance lenders during the specified period. These arrangements allowed dealers to earn additional commissions on top of their standard sales commission if certain conditions were met, such as meeting performance targets or securing specific types of financing. This investigation uncovered that these discretionary commissions may have influenced dealers to push customers towards more expensive PCP and HP agreements rather than less costly options like outright purchase. The FCA estimated that this affected 12.1 million eligible agreements (FCA, March 2026), with a total value of £7.5 billion (FCA estimate). On average, each affected agreement resulted in an overcharge of approximately £829 (FCA estimate). ## How to Check Your Agreement Were you offered a PCP or HP plan with an option to return the car or make a final payment? - Dealer Incentives: Did your dealer seem particularly insistent on financing options over outright purchase? Were there additional incentives or pressures from the salesperson to choose certain finance types? If you identify these red flags, it’s important to review your agreement documents for any discrepancies in terms or payments. ## How to Complain Directly to Your Lender for Free You do not need a claims management company to address potential issues with your Genesis car finance agreement. Common lenders like Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance all offer free complaint resolution processes. First, gather evidence such as copies of your finance agreement, communication records (emails, letters), and any relevant documentation that might support your case. Once you have this information ready, contact your lender directly to explain the issues and request a review. Lenders are required by law to handle complaints fairly and promptly. They will review your case and provide an initial response within a few weeks before issuing a final decision if needed. ## Sources and References - Financial Conduct Authority (FCA), 2024 - Office for National Statistics (ONS) Census, 2021

FCA Compensation: FCA Scheme Figures

The FCA confirmed on 30 March 2026 that 12.1 million motor finance agreements are covered by the FCA redress scheme. The FCA-estimated scheme average of £829 per eligible agreement per agreement, with a total of £7.5 billion set aside for consumers. The scheme covers PCP and HP agreements entered into between 6 April 2007 and 1 November 2024.

Two separate schemes apply: post-2014 agreements (implement by 30 June 2026) and pre-2014 agreements (implement by 31 August 2026). The final deadline to complain is 31 August 2027. You can complain to your lender directly for free. You do not need a claims management company.

Frequently Asked Questions

What steps can I take if I believe my Genesis car finance agreement was mis-sold?

If you suspect your Genesis car finance agreement was mis-sold, first contact the lender directly to express your concerns for free. This is a crucial step as it allows the lender to address any issues without involving third parties.

How common are motor finance agreements in the UK?

12.1 million eligible agreements (FCA, March 2026) have been issued since April 6, 2007 (FCA estimate), indicating that motor finance is widely used across various car brands including Genesis. Understanding how prevalent these agreements are can help you recognize if your situation aligns with common issues faced by other consumers.

What should I do if I feel the terms of my Genesis car finance agreement are too harsh?

If you find the terms of your Genesis car finance agreement overly restrictive, it is advisable to review your contract thoroughly. You can also seek independent financial advice and consider contacting the lender to negotiate more favorable terms.

Are there any specific red flags I should be aware of when considering a Genesis car finance agreement?

When entering into a motor finance agreement for a Genesis vehicle, watch out for high interest rates, excessive penalties for early repayment, or misleading information about the terms and conditions. These could indicate potential mis-selling.

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.