The Honda PCX125 was commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the period from 6 April 2007 to 1 November 2024. The Financial Conduct Authority (FCA) has recently concluded its investigation into motor finance mis-selling, revealing significant issues with discretionary commission arrangements that affected numerous consumers.
How the Honda PCX125 was Typically Financed
During the period under review, financing a Honda PCX125 typically involved Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements. The typical finance amount ranged from £5,000 to £15,000 with a term of 36 to 48 months. Common lenders for the PCX125 included Black Horse, Close Brothers Motor Finance, MotoNovo Finance, and Moneybarn.
In these agreements, customers would make monthly payments over the agreed term, with many contracts including a final balloon payment at the end to cover the residual value of the motorcycle. This structure made it appealing for consumers looking to manage their budget while acquiring a popular scooter like the PCX125.
The FCA Motor Finance Investigation
The FCA investigation uncovered significant issues related to discretionary commission arrangements between lenders and car dealerships, which affected 12.1 million eligible agreements (FCA, March 2026) during the period from 6 April 2007 to 1 November 2024. These arrangements were found to incentivise dealers to sell finance rather than offering customers a fair deal.
The total amount overcharged as a result of these practices was estimated at £7.5 billion (FCA, March 2026). On average, each affected customer paid approximately £829 more than they should have due to mis-selling practices (FCA estimate).
How to Check Your Agreement
- Discretionary Commission Arrangements (DCA): Look for any mention of commissions or fees paid to dealers based on the type of finance agreement you chose. If these were present, it could indicate a mis-selling issue.
If your agreement includes references to these arrangements or was signed during the relevant period, there is a high likelihood that you are affected by the FCA investigation.
You do not need a claims management company to lodge a complaint with your lender. Common lenders for Honda PCX125 finance agreements include Black Horse, Close Brothers Motor Finance, MotoNovo Finance, and Moneybarn. Each of these institutions has an internal complaints process that you can use at no cost.
To start the process:
- Review Your Agreement: Ensure you understand your rights as outlined in the agreement.
- Gather Documentation: Collect any relevant documents such as contracts, invoices, and correspondence with dealers or lenders.
- Contact Your Lender: Reach out to your lender's customer service department via phone or email to initiate a complaint.
You can complain directly to your lender for free without the need for a claims management company. This approach is often more straightforward and allows you to handle the process independently, reducing unnecessary costs and hassle.
Sources and References
- Financial Conduct Authority (FCA). "Financial Services Compensation Scheme: Motor Finance Investigation." [Available at FCA website] (FCA estimate)
- Office for National Statistics (ONS) Census 2021. [Available at ONS website]
- Financial Ombudsman Service ([FOS](https://mlj.org.uk/guides/financial-ombudsman-service)). Complaints statistics and guidance. [Available at FOS website]