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KTM Motorbike Finance Mis-Selling — FCA Investigation

Last updated: 26 February 2026

KTM motorbikes, renowned for their Austrian craftsmanship and performance, were frequently sold to UK consumers on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the period from 6 April 2007 to 1 November 2024. This time frame coincided with a significant investigation by the Financial Conduct Authority (FCA) into mis-selling practices in motor finance, which could affect many KTM owners who financed their bikes through these schemes. ## How KTM Motorbikes Were Financed KTM motorbikes were commonly financed through major lenders such as Black Horse, Close Brothers Motor Finance, MotoNovo Finance, and Moneybarn. These agreements often included Personal Contract Purchase (PCP) and Hire Purchase (HP) options that allowed consumers to spread the cost of their new KTM bike over a set period with interest charges. PCP plans typically featured a final balloon payment at the end of the term, while HP agreements usually required full repayment by the end date without any further option. ## The FCA Motor Finance Investigation The FCA launched an investigation into discretionary commission arrangements in motor finance between 6 April 2007 and 1 November 2024. It was found that some lenders had been paying large commissions to dealers for each financed vehicle, which could have influenced the type of deals offered to consumers. This investigation revealed that 12.1 million eligible agreements (FCA, March 2026) by these practices (FCA estimate), resulting in an estimated £7.5 billion total loss across all affected customers (FCA estimate). On average, individuals suffered a financial hit of around £829 (FCA estimate). ## How to Check Your Agreement Key indicators include unusually high interest rates or unexpected fees that were not clearly explained at the time of purchase. check the dates: agreements signed between 6 April 2007 and 1 November 2024 are most likely to be affected. If you suspect an issue with your finance deal, it is advisable to review your contract thoroughly or seek legal advice. ## How to Complain Directly to Your Lender for Free If you believe that your KTM motorbike finance agreement was mis-sold due to the discretionary commission arrangements, you can complain directly to your lender without incurring any costs. Common lenders for KTM bikes include Black Horse, Close Brothers Motor Finance, MotoNovo Finance, and Moneybarn. Each of these companies has a dedicated complaints process that allows you to file a formal complaint free of charge. It is important to gather all relevant documentation such as the finance agreement, payment receipts, and any correspondence with your lender before initiating the complaint. You do not need a claims management company to handle this; the process can be managed directly through your lender's customer service channels or online portal. By doing so, you ensure that the initial investigation is thorough and unbiased. ## Sources and References - Financial Conduct Authority (FCA). (2024). Motor Finance Investigation Report. - Office for National Statistics (ONS) Census 2021.

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.

KTM MOT Pass Rate — 2024 Data

Across 27,907 MOT tests in 2024, KTM vehicles have an overall pass rate of 91.7%. This is above the national average of 79.6%. DVSA data covers 132 KTM models with sufficient test volume.

Overall pass rate: 91.7%
Total MOT tests (2024): 27,907
Models with data: 132
National average: 79.6%

Best KTM models for MOT pass rate

KTM 1190: 95.0% pass rate (581 tests)
KTM 1290: 94.6% pass rate (803 tests)
KTM 690: 93.6% pass rate (715 tests)
KTM Unclassified: 89.7% pass rate (692 tests)
KTM 125 Duke 21: 86.2% pass rate (501 tests)

KTM models with lowest MOT pass rate

KTM 690: 93.6% pass rate (715 tests)
KTM Unclassified: 89.7% pass rate (692 tests)
KTM 125 Duke 21: 86.2% pass rate (501 tests)
KTM 125 Duke 19: 85.9% pass rate (539 tests)
KTM 125: 78.2% pass rate (970 tests)

KTM MOT Reliability Trend (2022-2024)

KTM pass rates have remained stable: 91.2% in 2022, 91.5% in 2023, and 91.7% in 2024.

2022: 91.2% pass rate (26,917 tests)
2023: 91.5% pass rate (29,329 tests)
2024: 91.7% pass rate (27,907 tests)

Based on 84,153 MOT tests across three years (DVSA open data).

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

Frequently Asked Questions

What is KTM motorbike finance mis-selling?

KTM motorbike finance mis-selling refers to instances where individuals were sold a motorbike financing agreement that was unsuitable for their circumstances or needs. This can include being misled about the terms, cost, or suitability of the agreement.

How many KTM motorbike owners might be affected by motor finance mis-selling?

While specific numbers are not available, the issue of motor finance mis-selling has affected numerous individuals across various motorcycle brands. It is estimated that there were 12.1 million eligible agreements (FCA, March 2026) under this arrangement from April 6, 2007 to November 1, 2024 (FCA estimate).

What should I do if I suspect my KTM motorbike finance was mis-sold?

If you believe your KTM motorbike finance agreement was unsuitable or incorrectly sold to you, it is advisable to review the details of your agreement and consider whether it meets your needs. You can also contact your lender directly for free to discuss any concerns about the sale process.

Is there a need to use a claims management company for KTM motorbike finance mis-selling?

You do not need a claims management company to address issues related to KTM motorbike finance mis-selling. It is possible to handle complaints directly with your lender or seek independent legal advice if necessary.

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.