Is it possible that your Kia Sportage was sold to you on a
Personal Contract Purchase (PCP) or
Hire Purchase (HP) agreement during an era marked by significant financial mis-selling practices? From 6 April 2007 to 1 November 2024, the Financial Conduct Authority (FCA) uncovered widespread issues in the motor finance industry that could affect your Kia Sportage’s financing agreement.
How the Kia Sportage was Typically Financed
The Kia Sportage, a popular compact SUV, was frequently sold on PCP and HP finance agreements during the period under investigation. Commonly, customers would enter into these agreements for a typical amount of £15,000 to £30,000 (FCA estimate). The standard term for a PCP agreement ranged from 36 to 48 months, providing flexibility in repayment plans and options at the end of the contract. Balloon payments were often included in these agreements, which are lump sum payments due at the end of the contract if you decide to buy or lease another car.
Several lenders commonly provided finance for Kia Sportage purchases during this period, including
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. These arrangements often included
discretionary commission (DCA) payments that incentivised dealers to sell certain products at the expense of transparency and customer fairness.
The FCA Motor Finance Investigation
The FCA’s investigation into motor finance uncovered significant problems with discretionary commission arrangements (DCAs), which were widespread across the industry. DCAs were designed to reward dealers for selling particular financial products, but often led to hidden costs and less favourable deals for consumers. As a result of this investigation, it was found that 12.1 million eligible agreements (FCA, March 2026) had been affected, with an estimated £7.5 billion (FCA, March 2026) in total losses to customers (FCA estimate). On average, each customer lost approximately £829 (FCA estimate).
How to Check Your Agreement The relevant dates are crucial; agreements signed between 6 April 2007 and 1 November 2024 were subject to the investigation. If your agreement mentions "Discretionary Commission Arrangement" (DCA) or something similar, it is likely affected.
If you suspect that your Kia Sportage’s finance agreement was mis-sold due to DCAs, you can complain directly to your lender for free. Common lenders associated with the Kia Sportage include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. It is important to gather evidence such as copies of your contract, correspondence with the dealer, and any communications regarding the terms of your agreement before initiating a complaint.
You do not need a
claims management company to handle this process; you can manage it yourself or seek free legal advice from organisations like MLJ.org.uk (MLJ). By approaching your lender directly, you can potentially resolve issues more quickly and efficiently without incurring additional costs.
Sources and References
- Financial Conduct Authority (FCA), 2024
- Office for National Statistics (ONS) Census 2021
Based on 261,069 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Kia Sportage has a pass rate of 82.4%. This is close to the national average of 79.6%, meaning the Sportage performs about average in MOT testing.
The Sportage pass rate is in line with the overall Kia average of 81.4%. The average mileage at MOT for this model is 64,486 miles.
- MOT pass rate: 82.4%
- MOT failure rate: 17.6%
- Tests analysed: 261,069 (2024 DVSA data)
- Average mileage at test: 64,486 miles
- Kia average pass rate: 81.4%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.