The Mercedes-Benz EQC, an electric compact SUV, was commonly sold on
Personal Contract Purchase (PCP) and
Hire Purchase (HP) finance agreements during the Financial Conduct Authority’s (FCA) investigation period from 6 April 2007 to 1 November 2024. The FCA identified issues with
discretionary commission arrangements that may have affected many buyers who financed their Mercedes-Benz EQC through these methods.
How the Mercedes-Benz EQC Was Typically Financed
The Mercedes-Benz EQC was often purchased using PCP and HP finance agreements, which typically ranged from £15,000 to £30,000. These agreements were commonly provided by lenders such as
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance. In a typical PCP agreement for the Mercedes-Benz EQC, buyers would make monthly payments over a term of 36 to 48 months, with an option to buy the vehicle outright at the end or return it to the lender.
The FCA Motor Finance Investigation
The FCA launched an investigation into discretionary commission arrangements used by finance brokers and lenders in the motor finance market. These arrangements allowed lenders to pay additional commissions to dealers based on how many customers they referred, potentially influencing sales practices. The FCA found that 12.1 million eligible agreements (FCA, March 2026) were affected during its investigation period from April 2007 to November 2024, resulting in an estimated £7.5 billion (FCA, March 2026) total overcharges (FCA estimate). On average, each customer was overcharged by about £829 (FCA estimate).
How to Check Your Agreement Look for clauses or terms mentioning discretionary commission arrangements, balloon payments, or any language indicating that you were charged more than a fair and transparent price due to these practices. check the dates of your finance agreement; if it falls within the period from April 2007 to November 2024, there is a possibility that your arrangement was impacted.
Another key term to look for in your documentation is "DCA" (Discretionary
Commission Arrangement). If you find this or similar language, your finance agreement may be subject to investigation and possible compensation. It’s important to consult the terms of your specific loan contract carefully to identify any potential issues.
If you suspect that your Mercedes-Benz EQC finance agreement was affected by discretionary commission arrangements, you can complain directly to your lender for free without needing a
claims management company. Common lenders for the Mercedes-Benz EQC include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
When contacting your lender, provide them with details of your finance agreement, including any documentation that supports your claim. Explain clearly why you believe your contract was affected by unfair practices during the FCA investigation period. Lenders are required to address complaints fairly and without charging fees for handling them directly.
You do not need a claims management company to lodge a complaint or seek compensation. Many lenders have dedicated teams to handle such inquiries efficiently, ensuring that customers can resolve issues promptly and at no cost.
Sources and References
- FCA estimates on affected agreements: [FCA]
- Total overcharges estimate: [FCA]
- Average overcharge per customer: [FCA]
Based on 375,769 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Mercedes-Benz C has a pass rate of 81.1%. This is close to the national average of 79.6%, meaning the C performs about average in MOT testing.
The C pass rate is in line with the overall Mercedes-Benz average of 82.3%. The average mileage at MOT for this model is 86,936 miles.
- MOT pass rate: 81.1%
- MOT failure rate: 18.9%
- Tests analysed: 375,769 (2024 DVSA data)
- Average mileage at test: 86,936 miles
- Mercedes-Benz average pass rate: 82.3%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.