The Volvo C40 was commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the Financial Conduct Authority's (FCA) investigation period, which lasted from 6 April 2007 to 1 November 2024. The FCA’s findings revealed that many car buyers who financed their vehicles through PCP or HP arrangements may have been victims of mis-selling practices by lenders and dealerships. An estimated 12.1 million eligible agreements (FCA, March 2026), with a total value of £7.5 billion (FCA, March 2026), averaging around £829 per agreement (FCA estimate). This investigation highlighted the widespread issue of discretionary commission arrangements in motor finance deals that could have led to inflated financing costs for customers.
How the Volvo C40 was Typically Financed
The Volvo C40, like many other vehicles sold during the FCA’s investigation period, was often financed through PCP or HP agreements. Typical PCP terms ranged from £15,000 to £30,000 for a 36-48 month term with a significant balloon payment at the end of the agreement. Common finance lenders for Volvo C40 included
Black Horse, Barclays Partner Finance,
Close Brothers Motor Finance,
MotoNovo Finance, and
Santander Consumer Finance.
Under PCP agreements, customers pay monthly instalments towards the car’s value while retaining ownership until they make the final balloon payment or return the vehicle. HP agreements typically require higher monthly payments but result in full ownership of the vehicle at the end of the term. Both finance types can be complex due to interest rates, fees, and additional charges that may inflate the total cost.
The FCA Motor Finance Investigation
The FCA’s investigation into motor finance arrangements uncovered significant issues with discretionary commission practices, which were widespread among lenders such as those commonly used by Volvo C40 buyers. Discretionary commissions are bonuses paid to dealerships for selling certain types of finance agreements or pushing customers towards specific products that may not be in their best interest.
The FCA found that these practices could lead to higher financing costs and more restrictive terms, affecting millions of consumers across the UK. With 12.1 million eligible agreements (FCA estimate) and a total value of £7.5 billion (FCA, March 2026), many car owners might have paid more than necessary for their finance deals.
How to Check Your Agreement Key elements to check include:
- Agreement Date: Ensure it falls within the investigation period (6 April 2007 to 1 November 2024).
- Finance Terms: Identify if you have a PCP or HP agreement.
- Lender Details: Common lenders for Volvo C40 included Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance.
- Discretionary Commission Arrangements (DCA): Look for mentions of DCA in your finance contract or any related paperwork.
Understanding these elements can help you determine if your agreement was part of the FCA investigation. If you suspect mis-selling practices or inflated costs due to discretionary commissions, you should take action to protect your rights as a consumer.
If you believe your Volvo C40’s finance agreement may have been affected by the FCA investigation, it is crucial to address this issue directly with your lender. Common lenders such as Black Horse, Barclays Partner Finance, Close Brothers Motor Finance, MotoNovo Finance, and Santander Consumer Finance all provide customer service channels through which you can raise concerns.
You do not need a claims management company to complain; contacting the lender directly allows you to handle the matter efficiently without additional fees or intermediaries. Start by reviewing your finance agreement for any contact information provided by the lender. Most lenders have dedicated teams and online platforms designed to assist customers with complaints.
Sources and References
- Financial Conduct Authority (FCA), 2024
- Office for National Statistics Census, 2021