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Skoda Car Finance Mis-Selling — FCA Investigation

Last updated: 12 July 2026

Skoda cars, known for their reliability and value for money, were commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the period from 6 April 2007 to 1 November 2024. This timeframe coincided with a major investigation by the Financial Conduct Authority (FCA) into motor finance mis-selling practices, which affected millions of car buyers across the UK. ## How Skoda Cars Were Financed Skoda cars were frequently financed through several common lenders including Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. These financing arrangements often came with features such as deferred payments, guaranteed future values for PCP agreements, and flexible mileage options. However, many of these finance deals included discretionary commission arrangements where dealers could receive additional payments from lenders based on the type of agreement chosen by customers. ## The FCA Motor Finance Investigation The Financial Conduct Authority (FCA) launched an investigation into motor finance mis-selling practices that revealed significant issues with how PCP and HP agreements were sold to consumers. A key finding was the widespread use of discretionary commission arrangements, which incentivised dealers to push certain types of deals rather than focusing on what was best for the customer. The FCA estimated that 12.1 million eligible agreements (FCA, March 2026) were affected by these practices during the investigation period, resulting in a total overcharge of £7.5 billion (FCA estimate). On average, each affected finance agreement had an additional cost of around £829 (FCA estimate). ## How to Check Your Agreement - Dealer Incentives: Look for any indications that your dealer received additional payments based on the type of finance deal you chose. This could be reflected in sales documentation or correspondence from the lender. If you suspect that your agreement might have been mis-sold, it is advisable to gather all relevant documents and reach out directly to your financing provider for clarification. ## How to Complain Directly to Your Lender for Free You do not need a claims management company to handle your complaint. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance all have dedicated customer service teams that can assist you in resolving any issues related to mis-selling. Contacting them directly is free of charge and often more straightforward than going through a claims management company. ## Sources and References - Financial Conduct Authority (FCA). "Motor Finance Market Study". FCA, 2024. - Office for National Statistics (ONS) Census 2021. - Financial Ombudsman Service (FOS).

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.

Skoda MOT Pass Rate — 2024 Data

Across 806,269 MOT tests in 2024, Skoda vehicles have an overall pass rate of 82.9%. This is above the national average of 79.6%. DVSA data covers 94 Skoda models with sufficient test volume.

Overall pass rate: 82.9%
Total MOT tests (2024): 806,269
Models with data: 94
National average: 79.6%

Best Skoda models for MOT pass rate

Skoda Octavia Se L Tdi S-A: 94.3% pass rate (547 tests)
Skoda Karoq Se Drive Tsi: 94.3% pass rate (900 tests)
Skoda Octavia Vrs Tsi S-A: 93.7% pass rate (508 tests)
Skoda Octavia Se L Tsi: 93.6% pass rate (1,010 tests)
Skoda Karoq Se Drive Tsi S-A: 93.1% pass rate (656 tests)

Skoda models with lowest MOT pass rate

Skoda Octavia: 82.0% pass rate (195,887 tests)
Skoda Rapid: 81.2% pass rate (24,059 tests)
Skoda Fabia: 79.2% pass rate (246,773 tests)
Skoda Roomster: 76.3% pass rate (20,289 tests)
Skoda Felicia: 69.9% pass rate (893 tests)

Skoda MOT Reliability Trend (2022-2024)

Skoda MOT pass rates have declined slightly, from 83.9% in 2022 to 82.9% in 2024 (-1.0 percentage points).

2022: 83.9% pass rate (817,745 tests)
2023: 83.4% pass rate (865,185 tests)
2024: 82.9% pass rate (806,269 tests)

Based on 2,489,199 MOT tests across three years (DVSA open data).

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

Frequently Asked Questions

How can I identify if my Skoda motor finance agreement was mis-sold?

Identifying whether your Skoda motor finance agreement was mis-sold involves checking for issues such as incorrect disclosure of APR, inadequate affordability assessments, or inappropriate pressure to enter into a finance deal. If you suspect that the terms were not clearly explained or if there are discrepancies in your contract, these could indicate mis-selling.

What should I do if I believe my Skoda motor finance agreement was mis-sold?

If you believe your Skoda motor finance agreement was mis-sold, the first step is to contact the lender directly and explain your concerns. You can complain for free without needing a claims management company.

How many people have been affected by mis-selling in Skoda motor finance agreements?

While specific figures for Skoda are not available, it's estimated that 12.1 million eligible agreements (FCA, March 2026) across the UK were potentially mis-sold from April 2007 to November 2024 (FCA estimate).

What can I do if my complaint about a mis-sold Skoda motor finance agreement is not resolved?

If your complaint with the lender does not resolve the issue, you may consider seeking further advice from financial ombudsmen or other independent bodies. You should also be aware of your rights and options for redress in such situations.

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.