MG Car Finance Mis-Selling - FCA Investigation

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MG Car Finance Mis-Selling - FCA Investigation

Last updated: 26 February 2026

MG 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 spanned from 6 April 2007 to 1 November 2024. The FCA found that many of these agreements may have been mis-sold due to discretionary commission arrangements between car dealers and finance lenders.

How MG Cars Were Financed

MG cars are often financed through a variety of lenders, including Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. These lenders commonly offer PCP and HP agreements to buyers looking to purchase an MG vehicle. Under these financing schemes, customers can make monthly payments for the car over an agreed period and have options at the end of the agreement such as returning the car or purchasing it outright.

The FCA Motor Finance Investigation

The Financial Conduct Authority (FCA) conducted a full investigation into motor finance agreements across the UK from 6 April 2007 to 1 November 2024. It was found that many dealerships received discretionary commission payments for recommending certain lenders and finance products, which could have influenced their advice. This practice potentially affected 12.1 million eligible agreements (FCA, March 2026) with a total value of £7.5 billion (FCA estimate). On average, customers could be owed approximately £829 (FCA estimate) if they were mis-sold an MG finance agreement due to these discretionary commission arrangements.

How to Check Your Agreement Firstly, check the dates of your finance agreement; it must have been issued between 6 April 2007 and 1 November 2024 to fall within the scope of the investigation. Secondly, review any documents or communication from your dealership that may indicate they received additional payments for recommending a particular lender or financing option.

How to Complain Directly to Your Lender for Free

If you suspect that your MG car finance agreement was mis-sold due to discretionary commissions, you can complain directly to the finance company without needing to use a claims management company. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance should have processes in place for handling complaints related to motor finance agreements. To start your complaint, gather evidence of any communication from your dealership that suggests they received additional payments for recommending a specific lender. Include details about the dates of your agreement and the total amount you paid or still owe under the contract. Submit this information directly to your lender according to their official complaint procedure. You do not need a claims management company; contacting your finance provider directly is free and straightforward.

Sources and References

Financial Conduct Authority (FCA). "Motor Finance: Discretionary commission arrangements." FCA estimate.
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.

MG MOT Pass Rate - 2024 Data

Across 115,786 MOT tests in 2024, MG vehicles have an overall pass rate of 85.4%. This is above the national average of 79.6%. DVSA data covers 51 MG models with sufficient test volume.

Overall pass rate: 85.4%
Total MOT tests (2024): 115,786
Models with data: 51
National average: 79.6%

Best MG models for MOT pass rate

MG Hs Exclusive Phev Auto: 95.6% pass rate (1,536 tests)
MG 4 Se: 95.2% pass rate (621 tests)
MG Hs Excite Phev Auto: 93.7% pass rate (587 tests)
MG Zs Trophy Ev: 93.5% pass rate (629 tests)
MG Zs Exclusive T-Gdi: 93.5% pass rate (957 tests)

MG models with lowest MOT pass rate

MG Zt: 75.9% pass rate (1,360 tests)
MG Mgf: 74.6% pass rate (5,564 tests)
MG Zr: 74.1% pass rate (2,098 tests)
MG 6: 72.7% pass rate (2,117 tests)
MG Zt-T: 71.9% pass rate (744 tests)

MG MOT Reliability Trend (2022-2024)

MG has been getting more reliable, improving from 82.0% in 2022 to 85.4% in 2024 (+3.4 percentage points).

2022: 82.0% pass rate (81,337 tests)
2023: 83.7% pass rate (100,642 tests)
2024: 85.4% pass rate (115,786 tests)

Based on 297,765 MOT tests across three years (DVSA open data).

Data source: DVSA anonymised MOT test results 2024, Open Government Licence v3.0.

Frequently Asked Questions

What is MG motor finance mis-selling?

MG motor finance mis-selling refers to the wrongful selling or advising of financial products related to MG vehicles. This could include pushing expensive deals that are unsuitable for the borrower's circumstances.

How can I know if I was sold an unsuitable MG car finance agreement?

You may have been sold an unsuitable MG car finance agreement if you were not fully aware of all available options, were pressured into a quick decision, or the terms did not match your financial situation.

What should I do if I suspect I was mis-sold an MG motor finance deal?

If you believe you have been mis-sold an MG motor finance agreement, it is advisable to review your contract and contact the lender directly for free. You can also seek independent legal advice.

Are there any statistics about MG car finance mis-selling issues?

While specific data on MG may not be available, across the UK motor finance industry from April 6, 2007 to November 1, 2024, it is estimated that 12.1 million eligible agreements (FCA, March 2026) have been identified as potentially unsuitable (FCA estimate).

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.