The Toyota Highlander 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. This investigation uncovered widespread mis-selling practices in the motor finance industry, affecting millions of consumers who purchased their vehicles through these arrangements.
How the Toyota Highlander was Typically Financed
The Toyota Highlander is a popular mid-size SUV available for purchase on PCP and HP agreements. During the period under scrutiny, typical financing terms ranged from £15,000 to £30,000 across various model trims. Common lenders providing finance for the Toyota Highlander included Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
In PCP agreements specifically, a typical term was 36-48 months, with a significant proportion of these deals involving balloon payments at the end of the agreement. These balloon payments represent a large final payment to own the vehicle outright or trade it in for another model.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into discretionary commission arrangements within the motor finance industry, revealing that millions of consumers were affected by mis-selling practices. According to the FCA estimate, 12.1 million eligible agreements (FCA, March 2026) impacted, resulting in £7.5 billion (FCA, March 2026) total losses for consumers across various car brands and models, including the Toyota Highlander. On average, each consumer lost approximately £829 due to these arrangements (FCA estimate).
The investigation highlighted that many lenders provided incentives to dealerships through discretionary commission schemes, which incentivised sales of more expensive finance deals rather than focusing on customer needs and affordability. This led to customers being sold unsuitable or overly complex financial products.
How to Check Your Agreement Key indicators of an affected agreement include the presence of discretionary commission arrangements (DCA) within your documentation.
You should look at several aspects:
- The terms of your PCP or HP deal.
- Any balloon payments mentioned in your contract.
- Whether you were encouraged to opt for a more expensive finance package than necessary.
- Dates relevant to your purchase and any subsequent changes or renewals during the FCA investigation period.
If your agreement mentions "discretionary commission" or similar terms, it is likely affected by the investigation. You should also check if the lender involved is one of those commonly associated with Toyota Highlander financing (e.g., Black Horse, Barclays Partner Finance).
If you believe your finance agreement for a Toyota Highlander was mis-sold or unsuitable due to discretionary commission arrangements, you can complain directly to your lender at no cost. Common lenders for the Toyota Highlander include:
- Black Horse
- Barclays Partner Finance
- Close Brothers Motor Finance
- MotoNovo Finance
- Santander Consumer Finance
When contacting these lenders, provide detailed evidence of why you believe your finance agreement was mis-sold or unsuitable. Include any relevant documentation and clearly state that your complaint is related to the FCA investigation into motor finance discretionary commission arrangements.
You do not need a claims management company to handle this process; many consumers successfully resolve their complaints directly with lenders without external assistance.
Sources and References
- Financial Conduct Authority (FCA) estimates on mis-selling in motor finance agreements
- ONS Census data for relevant demographic information
- FCA investigation documents and reports related to motor finance practices