Was your Volkswagen T-Cross purchased under a
Personal Contract Purchase (PCP) or
Hire Purchase (HP) agreement during the period from 6 April 2007 to 1 November 2024? If so, you may be among the millions of consumers affected by motor finance mis-selling practices that were part of the Financial Conduct Authority’s (FCA) investigation into
discretionary commission arrangements. The Volkswagen T-Cross, a popular compact SUV in the UK market, was commonly sold on PCP and HP financing plans during this period.
How the Volkswagen T-Cross Was Typically Financed
The Volkswagen T-Cross was frequently financed through Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements. Typical finance amounts ranged from £15,000 to £30,000, with terms usually spanning 36 to 48 months. Common lenders for the T-Cross included
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
In a PCP agreement, you make monthly payments over an agreed period, with a final balloon payment (often called a Guaranteed Minimum Future Value or GMFV) due at the end of the term if you wish to own the car. If you opt not to buy the vehicle, you can return it without further financial obligation beyond your last scheduled payment.
The FCA Motor Finance Investigation
The FCA’s investigation into motor finance mis-selling practices revealed that discretionary commission arrangements between lenders and retailers led to inflated prices for consumers. These arrangements allowed dealerships to receive additional payments from lenders when they sold a car on PCP or HP, which often resulted in higher interest rates and fees than necessary.
According to the FCA’s estimates, 12.1 million eligible agreements (FCA, March 2026) were affected by these mis-selling practices, involving a total of £7.5 billion (FCA, March 2026). On average, each affected agreement saw an overcharge of £829 (FCA estimate), highlighting the significant financial impact on consumers.
How to Check Your Agreement Key indicators include:
- High interest rates: Compare the APR (Annual Percentage Rate) on your agreement with current market standards.
- Discretionary commission arrangements: Check if there are any references to commissions or fees paid by lenders to dealerships based on sales volume.
- Dates of agreement: Ensure that your agreement was made between 6 April 2007 and 1 November 2024, the period covered by the FCA investigation.
If you find these indicators in your finance agreement, it is likely that you are entitled to a refund or compensation. Understanding terms like "Discretionary
Commission Arrangement" (DCA) can help clarify whether your deal was affected by mis-selling practices.
If you believe your Volkswagen T-Cross finance agreement was part of the FCA’s motor finance investigation, you have the right to complain directly to your lender. Common lenders for the T-Cross include Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
You do not need a
claims management company to handle your complaint; all major lenders offer free customer service channels through which you can submit your concerns. These channels typically include email, phone, or online forms where you can provide details of your finance agreement and any evidence supporting your claim.
By following the steps provided by your lender, you can initiate the process of seeking compensation without incurring additional costs associated with third-party claims management services.
Sources and References
- Financial Conduct Authority (FCA). "Motor Finance Market Study: Final Report." FCA, 2024.
- Office for National Statistics (ONS) Census 2021.
Based on 13,072 MOT tests conducted in 2024 (source: DVSA anonymised test data), the Volkswagen T-Cross has a pass rate of 91.0%. This is above the national average of 79.6%, meaning the T-Cross performs well in MOT testing.
The T-Cross pass rate is better than the overall Volkswagen average of 80.1%. The average mileage at MOT for this model is 26,877 miles.
- MOT pass rate: 91.0%
- MOT failure rate: 9.0%
- Tests analysed: 13,072 (2024 DVSA data)
- Average mileage at test: 26,877 miles
- Volkswagen average pass rate: 80.1%
- National average pass rate: 79.6%
Data source: DVSA anonymised MOT test results 2024, published under the Open Government Licence v3.0.