The KTM RC 390, a popular sporty motorbike known for its agility and performance, 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. This period saw numerous concerns over mis-selling practices within the motor finance industry, particularly around discretionary commission arrangements between dealers and lenders.
How the KTM RC 390 was Typically Financed
Motorbike enthusiasts looking for a high-performance machine like the KTM RC 390 often found it convenient to purchase through finance agreements. Typical financing options included PCP or HP plans with amounts ranging from £5,000 to £15,000 (FCA estimate). Common lenders providing these finance arrangements were Black Horse, Close Brothers Motor Finance, MotoNovo Finance, and Moneybarn.
In a Personal Contract Purchase agreement, customers would pay monthly instalments for the bike over a term of 36 to 48 months. At the end of this period, there was an option to return the motorbike, make a final lump sum payment (balloon payment) to own it outright, or trade it in against another vehicle.
The FCA Motor Finance Investigation
The Financial Conduct Authority (FCA) launched an investigation into discretionary commission arrangements within the motor finance industry. These arrangements were found to incentivise dealers to push certain types of finance products over others, often at higher costs to consumers without their full knowledge or consent. This practice affected 12.1 million eligible agreements (FCA, March 2026), covering a total value of £7.5 billion (FCA, March 2026). The average loss per consumer was estimated to be around £829 (FCA estimate).
The investigation highlighted how discretionary commissions could lead to mis-selling, particularly in cases where customers were not adequately informed about cheaper or more suitable financing options available to them.
How to Check Your Agreement Key indicators include:
- Discretionary Commission Arrangements: Look for references in your contract or correspondence from your lender that mention "discretionary commission" or similar terms.
- Relevant Dates: Ensure the finance agreement was signed between 6 April 2007 and 1 November 2024.
- DCA Term: The term "Discretionary Commission Agreement" (DCA) may be used to describe the type of arrangement your dealer had with their lender.
If any of these elements apply, it’s advisable to review your agreement in detail or seek further guidance from a financial advisor or independent expert.
You can complain directly to your lender without needing to involve a claims management company. Common lenders for KTM RC 390s include Black Horse, Close Brothers Motor Finance, MotoNovo Finance, and Moneybarn. When lodging a complaint, provide clear details about the issues you believe were caused by mis-selling practices during the investigation period.
Lenders are obligated to address complaints in good faith and often have internal processes or external bodies like the Financial Ombudsman Service (FOS) to assist with resolving disputes. Remember, it is entirely free to complain directly to your lender and seek redress without paying any fees or using intermediary services.
Sources and References
- Financial Conduct Authority (FCA), 2024
- Office for National Statistics Census 2021