The Frankia I-Series motorhome was commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the Financial Conduct Authority’s (FCA) investigation period, which ran from 6 April 2007 to 1 November 2024. The FCA investigation focused on discretionary commission arrangements in motor finance deals, affecting millions of consumers who purchased vehicles like the Frankia I-Series.
How the Frankia I-Series was Typically Financed
The Frankia I-Series motorhome was often financed through PCP and HP agreements that typically ranged from £40,000 to £80,000. Common lenders for these agreements included Black Horse, Close Brothers Motor Finance, Lombard, and Billing Finance. The typical terms of a PCP agreement were 48 to 120 months, with balloon payments at the end of the term that could significantly impact overall affordability.
Under a PCP agreement, consumers would make monthly payments for a set period, after which they had the option to either return the motorhome, purchase it outright through a large lump sum known as a balloon payment, or trade it in for another vehicle. This structure often made it difficult for borrowers to fully understand their financial obligations and potential costs.
The FCA Motor Finance Investigation
The FCA investigation uncovered that discretionary commission arrangements in PCP agreements had led to significant overcharging of consumers. According to the FCA, an estimated 12.1 million eligible agreements (FCA, March 2026) by these practices (FCA estimate), resulting in a total loss of approximately £7.5 billion (FCA, March 2026) for consumers (FCA estimate). The average consumer lost around £829 per agreement (FCA estimate) due to inflated commission costs that were not transparently communicated.
The investigation revealed that lenders and dealerships had been profiting from hidden commissions, which increased the cost of motor finance agreements without clear disclosure. This led to a significant loss in trust and financial hardship for many consumers who financed their Frankia I-Series motorhomes during this period.
How to Check Your Agreement Look for terms like “discretionary commission” or “DCA,” which stands for Discretionary Commission Arrangement. These phrases indicate that hidden commissions were likely included in the cost of your motorhome financing.
check if the agreement was made between 6 April 2007 and 1 November 2024, as these are the dates covered by the FCA investigation. If you find any indication of discretionary commissions or DCA arrangements, it is advisable to seek further information on your rights and potential recourse.
If you believe that your Frankia I-Series motorhome finance agreement was affected by the FCA investigation, you can directly complain to your lender without needing a claims management company. Common lenders for this vehicle include Black Horse, Close Brothers Motor Finance, Lombard, and Billing Finance.
When contacting your lender, provide clear details of your concerns regarding hidden commissions or inflated costs. Request a full review of your finance agreement to determine if any overcharges occurred. Your lender is required by law to address your complaint promptly and fairly without charging you any fees for this process.
You do not need a claims management company to file a complaint with your lender. The Financial Ombudsman Service (FOS) can also provide guidance on how to make an effective complaint if needed. Directly engaging with your lender is often the quickest and most straightforward way to resolve any issues related to motor finance mis-selling.
Sources and References
- Financial Conduct Authority, 2024
- Financial Ombudsman Service, 2024