Mercedes Finance Claim - A-Class, C-Class, GLC [2026]

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Mercedes Finance Claim - A-Class, C-Class, GLC [2026]

Last updated: 26 February 2026

Mercedes-Benz cars were commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the Financial Conduct Authority's (FCA) investigation period, which ran from 6 April 2007 to 1 November 2024. This period saw significant scrutiny over motor finance practices in the UK, with millions of car buyers potentially affected by mis-selling issues.

How Mercedes-Benz Cars Were Financed

Mercedes-Benz cars were often financed through various lenders including Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. These agreements typically involved PCP plans where customers make monthly payments for a set period before having the option to buy or return the vehicle at the end of the contract. HP agreements, on the other hand, involve full ownership after all payments are made.

The FCA Motor Finance Investigation

The FCA investigation uncovered widespread issues with discretionary commission arrangements between car dealers and finance providers during the period from 6 April 2007 to 1 November 2024. These practices may have led to customers being sold inappropriate or overly expensive finance products, affecting an estimated 12.1 million eligible agreements (FCA, March 2026) worth a total of £7.5 billion (FCA estimate), with the FCA-estimated average overpayment of £829 per eligible agreement.

How to Check Your Agreement Look for signs such as unusually high fees, misleading information about payment terms, or unexpected charges that were not initially disclosed. If you suspect mis-selling, you should check the dates on your agreement; agreements made between 6 April 2007 and 1 November 2024 are relevant.

How to Complain Directly to Your Lender for Free

You do not need a claims management company to address any concerns about your Mercedes-Benz finance agreement. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance all have dedicated teams to handle customer complaints directly at no cost. Gather evidence including your contract details, payment records, and any correspondence related to the alleged mis-selling. Submitting a formal complaint to these lenders can help you seek redress without incurring additional fees or engaging third-party services.

Sources and references

Financial Conduct Authority (FCA), 2024
Office for National Statistics Census (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 is Mercedes-Benz motor finance mis-selling?

Mercedes-Benz motor finance mis-selling occurs when a customer is incorrectly advised or sold an unsuitable financial product for their car purchase. This can include products that are too expensive, have hidden fees, or do not meet the customer's needs.

How many Mercedes-Benz customers might be affected by mis-sold motor finance?

According to the FCA estimate, 12.1 million eligible agreements (FCA, March 2026) were potentially mis-sold between April 2007 and November 2024. This includes various makes of cars including Mercedes-Benz.

What should I do if I suspect my Mercedes-Benz motor finance was mis-sold?

If you believe your Mercedes-Benz motor finance agreement might have been mis-sold, you can complain directly to the lender for free. The Financial Conduct Authority (FCA) recommends that you gather all relevant documents and contact the lender's customer service department.

What is the average refund amount for successfully complaining about Mercedes-Benz motor finance?

The FCA has reported an FCA-estimated average per eligible agreement of £829 per complaint related to mis-sold motor finance agreements. This figure applies broadly across all car manufacturers, including Mercedes-Benz.

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.