Home › Vehicles › Motorbikes › Royal Enfield Motorbike Finance — FCA Investigation

Royal Enfield Motorbike Finance — FCA Investigation

Last updated: 26 February 2026

Royal Enfield motorbikes, manufactured in India, were commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the Financial Conduct Authority’s (FCA) investigation period spanning from 6 April 2007 to 1 November 2024. This period saw significant scrutiny of motorbike financing practices across various lenders, including Black Horse, Close Brothers Motor Finance, MotoNovo Finance, and Moneybarn. ## How Royal Enfield Motorbikes Were Financed Royal Enfield owners often financed their bikes through several major finance providers such as Black Horse, Close Brothers Motor Finance, MotoNovo Finance, and Moneybarn. These lenders typically offered PCP agreements that allowed customers to make lower monthly payments during the term of the contract, with a final balloon payment due at the end of the agreement or when the bike is returned. Hire Purchase (HP) agreements, on the other hand, required regular monthly payments until the full amount was paid off without any additional fees. ## The FCA Motor Finance Investigation The FCA launched an investigation into motorbike finance to address concerns over discretionary commission arrangements that may have been unfair or misleading to consumers. This investigation found that 12.1 million eligible agreements (FCA, March 2026) potentially affected by these practices, with a total of £7.5 billion in mis-sold agreements (FCA estimate). The average mis-selling case resulted in losses of around £829 per customer (FCA estimate). The FCA identified several issues within the discretionary commission structure that could lead to inflated finance charges and additional costs for consumers who entered into PCP or HP agreements during the specified period. ## How to Check Your Agreement Look for any clauses related to discretionary commissions or any unusual charges that were not clearly explained at the time of purchase. If your agreement was signed between 6 April 2007 and 1 November 2024, it may be subject to investigation. You can also seek assistance from a financial advisor who can help you understand the terms of your finance agreement and whether there are grounds for complaint based on the FCA’s findings. ## How to Complain Directly to Your Lender for Free If you believe that your Royal Enfield motorbike finance agreement was mis-sold, you should contact the lender directly without engaging a claims management company. Common lenders such as Black Horse, Close Brothers Motor Finance, MotoNovo Finance, and Moneybarn all have dedicated teams to handle customer complaints. When initiating a complaint, gather any relevant documents that support your case, such as the original finance agreement, payment receipts, and correspondence with the lender. Provide clear evidence of any unfair practices or additional costs incurred due to discretionary commissions. You can complain directly to your lender for free and do not need a claims management company to assist you in this process. ## Sources and References - Financial Conduct Authority (FCA), 2024 - Office for National Statistics 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.

Royal Enfield MOT Pass Rate — 2024 Data

Across 9,475 MOT tests in 2024, Royal Enfield vehicles have an overall pass rate of 95.2%. This is above the national average of 79.6%. DVSA data covers 23 Royal Enfield models with sufficient test volume.

Overall pass rate: 95.2%
Total MOT tests (2024): 9,475
Models with data: 23
National average: 79.6%

Best Royal Enfield models for MOT pass rate

Royal Enfield Meteor 350 E5: 98.2% pass rate (762 tests)
Royal Enfield Interceptor Int 650 E5: 96.7% pass rate (512 tests)
Royal Enfield Bullet Classic Efi E4: 96.0% pass rate (751 tests)
Royal Enfield Interceptor Int 650: 95.9% pass rate (1,555 tests)
Royal Enfield Bullt: 95.2% pass rate (601 tests)

Royal Enfield models with lowest MOT pass rate

Royal Enfield Bullet Classic Efi E4: 96.0% pass rate (751 tests)
Royal Enfield Interceptor Int 650: 95.9% pass rate (1,555 tests)
Royal Enfield Bullt: 95.2% pass rate (601 tests)
Royal Enfield Bullet 500: 94.7% pass rate (606 tests)
Royal Enfield Himalayan: 93.5% pass rate (1,324 tests)

Royal Enfield MOT Reliability Trend (2022-2024)

Royal Enfield pass rates have remained stable: 95.1% in 2022, 95.2% in 2023, and 95.2% in 2024.

2022: 95.1% pass rate (6,959 tests)
2023: 95.2% pass rate (8,607 tests)
2024: 95.2% pass rate (9,475 tests)

Based on 25,041 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 should I do if I suspect Royal Enfield motorbike finance was mis-sold to me?

If you believe that your Royal Enfield motorbike finance agreement was mis-sold, the first step is to review your contract and terms of financing. You can also complain directly to your lender for free without needing a claims management company.

How many people might have been affected by Royal Enfield motorbike finance mis-selling?

While specific numbers are not available, the Financial Conduct Authority (FCA) estimates that 12.1 million eligible agreements (FCA, March 2026) potentially mis-sold from April 6, 2007, to November 1, 2024. It's possible some of these agreements may have been for Royal Enfield motorbikes.

Is it common for Royal Enfield dealerships to engage in motorbike finance mis-selling practices?

Financial misconduct involving motorbike financing is not unique to any specific brand, including Royal Enfield. Mis-selling can occur when lenders or dealers do not provide adequate information about the terms of a loan, leading consumers to enter into agreements they might not fully understand.

What steps should I take if my complaint regarding mis-sold Royal Enfield finance is unresolved?

If your complaint with the lender does not resolve the issue, you can escalate it to the Financial Ombudsman Service. This service provides an impartial review and can help mediate a fair outcome.

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.