Volvo Car Finance Mis-Selling - FCA Investigation

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Volvo Car Finance Mis-Selling - FCA Investigation

Last updated: 26 February 2026

Volvo cars, known for their Scandinavian design and safety features, were commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the Financial Conduct Authority's (FCA) motor finance investigation period from 6 April 2007 to 1 November 2024. This investigation uncovered widespread mis-selling issues affecting millions of motorists across the UK.

How Volvo Cars Were Financed

Volvo car buyers often turned to various lenders for financing their vehicles, including Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance. These agreements typically involved either PCP or HP finance options, which allowed customers to make monthly payments while retaining the option to return the vehicle at the end of the agreement in a PCP scenario.

The FCA Motor Finance Investigation

The FCA's investigation into motor finance revealed that many dealerships and lenders engaged in discretionary commission arrangements that may have compromised impartial advice. These commissions were paid by lenders to dealers for every loan arranged, potentially incentivising salespeople to push customers towards more expensive financing options rather than the most suitable ones. According to the FCA, these practices affected 12.1 million eligible agreements (FCA, March 2026) and resulted in an estimated £7.5 billion of overcharges (FCA estimate) (FCA, March 2026). This investigation highlighted significant concerns about transparency, fairness, and the overall financial health of consumers.

How to Check Your Agreement Look for any evidence that suggests you were offered a higher interest rate or additional fees than necessary due to discretionary commissions. Focus on agreements entered between 6 April 2007 and 1 November 2024.

If you suspect your agreement was affected, start by examining the dates of your finance arrangement closely. Discretionary commission arrangements were most prevalent during this period, making it crucial to identify whether your contract falls within this timeframe.

How to Complain Directly to Your Lender for Free

You do not need a claims management company to handle complaints about motor finance agreements. 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 who can address your concerns directly. Begin by contacting the lender that provided your Volvo car financing. Explain your situation clearly and provide any relevant documentation to support your claim. If you are unsatisfied with their response, escalate the issue through their internal complaints procedure or contact the Financial Ombudsman Service (FOS) for further assistance. You can complain directly to your lender for free without incurring additional costs or fees associated with claims management companies.

Sources and References

FCA estimates on motor finance mis-selling statistics
Financial Conduct Authority (FCA)
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.

Volvo MOT Pass Rate - 2024 Data

Across 599,435 MOT tests in 2024, Volvo vehicles have an overall pass rate of 81.3%. This is close to the national average of 79.6%. DVSA data covers 203 Volvo models with sufficient test volume.

Overall pass rate: 81.3%
Total MOT tests (2024): 599,435
Models with data: 203
National average: 79.6%

Best Volvo models for MOT pass rate

Volvo Xc40 R-Design B4 Mhev Auto: 95.4% pass rate (1,498 tests)
Volvo Xc40 Inscription B4 Mhev Auto: 95.2% pass rate (1,363 tests)
Volvo Xc40 Inscription Pro B4 Mhev A: 95.0% pass rate (2,262 tests)
Volvo Xc60 Momentum B4 Mhev Awd Auto: 95.0% pass rate (757 tests)
Volvo Xc60 Momentum B5 Mhev Auto: 95.0% pass rate (1,263 tests)

Volvo models with lowest MOT pass rate

Volvo 900 Series: 72.8% pass rate (3,532 tests)
Volvo C30: 72.1% pass rate (25,931 tests)
Volvo C70: 71.8% pass rate (8,389 tests)
Volvo S40: 70.9% pass rate (20,933 tests)
Volvo V50: 69.7% pass rate (34,783 tests)

Volvo MOT Reliability Trend (2022-2024)

Volvo has been getting more reliable, improving from 80.3% in 2022 to 81.3% in 2024 (+1.0 percentage points).

2022: 80.3% pass rate (634,551 tests)
2023: 80.5% pass rate (663,833 tests)
2024: 81.3% pass rate (599,435 tests)

Based on 1,897,819 MOT tests across three years (DVSA open data).

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

Frequently Asked Questions

I have a Volvo car finance agreement that I suspect was mis-sold to me. What are my rights?

If you believe your Volvo car finance agreement was mis-sold, the FCA-estimated scheme average is £829 per eligible agreement. You can complain directly to your lender for free without needing a claims management company.

How many people with Volvo car finance agreements have been affected by mis-selling?

Since April 2007, millions of consumers across the UK have entered into motor finance agreements, including those with Volvo cars. The Financial Conduct Authority (FCA) estimates that 12.1 million eligible agreements (FCA, March 2026) may be affected by mis-selling practices as of November 2024.

What kind of compensation can I receive if my Volvo car finance was mis-sold?

If your motor finance agreement with Volvo is found to have been mis-sold, you might be entitled to financial redress. The average refund for successful claims related to car finance agreements has been estimated at £829 (FCA estimate) as of November 2024.

What steps should I take if my Volvo car finance agreement was mis-sold?

If you suspect your Volvo car finance agreement was mis-sold, it's important to review the terms and conditions carefully. You can complain directly to your lender for free by providing evidence of any unfair practices or incorrect information given during the sales process (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.